Informatica Corp

In April 2015, it was announced that Informatica agreed to be bought by Canada Pension Plan Investment Board and Permira Advisors for $5.3 billion.

Informatica stock surged 6.8% to $41.04 on news of Elliott’s activist stake, bringing its market capitalization to around $4.5 billion.

Informatica Data Exchange products offer technology infrastructure for multi-enterprise data integration, partner management, and business-event monitoring.

Earlier this month, it was announced that Microsoft (MSFT) and Salesforce (CRM) have joined in the $5.3 billion leveraged buyout deal of Informatica.

As a general rule, MAC clauses follow a similar format. Nearly anything that has a material adverse effect on the company will be considered a MAC.

The MAC (material adverse change) clause lays out the circumstances under which the private equity consortium can back out of the deal with Informatica (INFA).

Let’s take a look at the specific conditions that could stop the Informatica deal. In private equity transactions, arbitrageurs take a very close look at the MAC.

For merger arbitrage professionals, competitive deals can make your quarter. Could the Informatica merger get broken up by an interloper?

The Informatica merger is a cash deal with a shareholder vote. It will have a longer timeline. Mergers generally take longer.

Based in Redwood City, California, Informatica provides data integration software and services. Software and services revenues were each up in 4Q14.