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.

🔗 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