Bulletin: Salesforce Inc. Credit Quality Unaffected By Proposed Acquisition Of Informatica Inc.

This report does not constitute a rating action. NEW YORK (S&P Global Ratings) May 27, 2025--San Francisco-based Salesforce Inc. (A+/Stable) announced it will acquire enterprise cloud data management provider Informatica Inc. for about $8 billion in equity value (net of its stake already owned). We expect Salesforce will fund the transaction with a mix of balance sheet cash and new debt. The company expects to close the transaction in 2026 (early fiscal 2027, ending Jan. 31, 2027) following customary regulatory approvals. Salesforce?s strong balance sheet (net cash position as of Jan. 31. 2025) and healthy annual free cash flow generation of more than $14 billion expected in fiscal 2026 provide a meaningful cushion to pursue its capital allocation goals at

...May 27, 2025 This report does not constitute a rating action. NEW YORK (S&P Global Ratings) May 27, 2025--San Francisco-based Salesforce Inc. (A+/Stable) announced it will acquire enterprise cloud data management provider Informatica Inc. for about $8 billion in equity value (net of its stake already owned). We expect Salesforce will fund the transaction with a mix of balance sheet cash and new debt. The company expects to close the transaction in 2026 (early fiscal 2027, ending Jan. 31, 2027) following customary regulatory approvals. Salesforce's strong balance sheet (net cash position as of Jan. 31. 2025) and healthy annual free cash flow generation of more than $14 billion expected in fiscal 2026 provide a meaningful cushion to pursue its capital allocation goals at the `A+' rating. We estimate the cash funding will increase Salesforce's pro forma debt to EBITDA to about 0.6x (up from a slight net cash position as of Jan. 31, 2025) compared with our 2x downgrade trigger. The company...

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