Informatica Trades above Its Moving Averages
Informatica (INFA) has generated returns of 49.16% in the TTM (trailing twelve months) for investors and 1.52% in the trailing one-month period.
Microsoft and Salesforce Invest in Informatica
Earlier this month, it was announced that Microsoft (MSFT) and Salesforce (CRM) have joined in the $5.3 billion leveraged buyout deal of Informatica.
Analyzing Informatica’s Leveraged Buyout Deal
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.
MAE Clause: What Could Stop the Informatica Merger?
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).
Informatica MAE Clause: Highlights for Investors
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.
Analyzing the Informatica Merger and the MAE Clause
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.
Can the Informatica Transaction Get Competitive?
For merger arbitrage professionals, competitive deals can make your quarter. Could the Informatica merger get broken up by an interloper?
Informatica Merger: The Required Regulatory Approvals
The Informatica merger is a cash deal with a shareholder vote. It will have a longer timeline. Mergers generally take longer.
Risk-Reward Analysis of the Informatica Merger
A merger agreement is a contract. If the consortium tries to walk away without a MAC occurring, the buyer could sue and demand specific performance.
The Informatica Merger: Elliott’s 13D Pays Off
The typical strategy for an activist investor is to identify an undervalued company, take a 5% position, file a 13D, and push the company to sell itself.
Basics of the Informatica Merger
Informatica has a non-solicitation agreement with a fiduciary out. Prior to shareholder approval, it could discuss another merger if approached by another suitor.
Elliott Management adds new position in Informatica
Based in Redwood City, California, Informatica provides data integration software and services. Software and services revenues were each up in 4Q14.
Elliott Management discloses 4Q14 positions
Elliott Management, a New York–based hedge fund, disclosed new positions in a 13F filed last month. Elliott Management has over 83 stocks in its portfolio.
Informatica: A market leader in data integration and data quality
Informatica Data Exchange products offer technology infrastructure for multi-enterprise data integration, partner management, and business-event monitoring.
Informatica a ‘visionary’ of master data management
Informatica’s master data management products deliver consolidated and reliable business-critical data—or master data—to improve business operations.
Informatica eyes market in big data and the Internet of Things
Informatica is looking to big data and Internet of Things (IoT) trends to drive future growth, disclosing its vision for an intelligent data platform.
Informatica targets ‘billion dollar’ cloud integration market
Informatica’s target opportunities include cloud integration, master data management, data integration for next-generation analytics, and data security.
Informatica forecasts subscriptions will pick up
Informatica forecasts a weak 2015 non-GAAP operating margin guidance of between 21% and 22%. But it believes the subscription business will improve by 2016.
Elliott Management takes activist stake in Informatica
Informatica stock surged 6.8% to $41.04 on news of Elliott’s activist stake, bringing its market capitalization to around $4.5 billion.