IBM held discussions to acquire Informatica prior to its US$8 billion purchase by Salesforce in May, according to sources familiar with the situation.

IBM representatives declined to comment, and Informatica did not respond to requests for comment.

This interest from IBM underscores the competitive nature of the acquisition process.

Other companies, including Cloud Software Group, also considered bidding for Informatica, according to previous reports.

Salesforce CEO Marc Benioff acknowledged the competition, saying, “We were lucky to be the winning bid,” in a recent interview.

IBM has been active in acquisitions as part of its strategy to focus on software and services.

Key acquisitions include Red Hat for US$34 billion in 2019, HashiCorp for US$6.4 billion in February 2025, and Apptio for US$4.6 billion in 2023.

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🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ IBM’s strategic pivot through acquisitions reveals broader tech industry transformation

IBM’s interest in Informatica aligns with its long-term transformation strategy from hardware manufacturing to high-value services and software.

Since 2015, IBM has dramatically shifted its revenue structure with over 60% coming from consulting services rather than traditional hardware sales 1.

This pursuit of Informatica follows a pattern of strategic acquisitions including Red Hat ($34 billion) and Apptio ($4.6 billion), all aimed at strengthening IBM’s position in cloud computing and AI capabilities.

The competitive bidding for Informatica highlights how established tech giants are racing to acquire specialized software companies that can enhance their enterprise offerings and accelerate their transformation into more nimble, high-growth businesses.

IBM’s continued pursuit of software acquisitions demonstrates how legacy technology companies are using M&A as a primary mechanism to rapidly evolve their business models in response to market demands.

2️⃣ Data integration platforms becoming critical battleground in enterprise software

The fierce competition for Informatica reflects the growing strategic importance of data management capabilities as organizations struggle with increasingly complex multi-cloud environments.

Informatica’s platform specializes in AI-powered data management across hybrid systems, a capability becoming essential as enterprises face expanding data volumes and complexity 2.

The data integration market is projected to reach $39 billion by 2032, explaining why major players like Salesforce and IBM are willing to engage in competitive bidding processes for established platforms 3.

Despite Informatica’s strong position with $1.66 billion in annual revenue, the company faces growing competition from nimble alternatives like Matillion, Fivetran, and Alteryx – creating pressure to either scale independently or join larger platforms 3.

This acquisition battle demonstrates how control of data integration capabilities has become a critical competitive advantage for enterprise software providers seeking to deliver comprehensive solutions to their customers.

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