Salesforce Inc. has reportedly dropped plans to acquire data management company Informatica Inc. for about $10 billion.

Although earlier reports in the media suggested that Salesforce was interested in buying Informatica, a statement published by the company today said that it was not in talks. Earlier this month, the Wall Street Journal reported that the two companies were in “advanced talks” to move forward with an acquisition.

Today, Reuters and the Wall Street Journal reported that the talks fizzled as the two companies couldn’t come to terms on the deal.

When initial news of the advanced talks broke on Apr. 12, investors did not react well and sent Salesforce’s shares plunging by 7%.

Founded in 1993, Informatica provides a data management and processing platform for large companies that uses artificial intelligence to assist with combining and handling data from multiple sources. The company offers tools and solutions for ingesting and analyzing data for making informed decisions about customer records, sales figures, market trends and more. On the AI front, the company released its own generative AI tool named Claire.

Informatica boasts more than 5,000 active customers, including giant corporations such as consumer goods company Unilever PLC and professional services network Deloitte.

The acquisition would have been the largest for Salesforce since the 2021 deal for messaging and productivity platform Slack Technologies Inc., valued at $27.7 billion. Shares in Informatica fell by about 7% in early trading, at a market value of about $11.2 billion. Salesforce shares rose about 1% on the news.

“Our business fundamentals continue to be very strong and we look forward to discussing our first-quarter financial results and outlook on May 1,” Informatica Chief Executive Amit Walia said in a statement.

Although the Slack purchase was notable for its size, Salesforce has a long history of acquiring companies to fuel its growth. Examples include MuleSoft Inc., an enterprise software integration company, and Tableau Inc., a visual analytics platform provider.

Photo: Salesforce