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.
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.
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, 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 Data Exchange products offer technology infrastructure for multi-enterprise data integration, partner management, and business-event monitoring.
Informatica’s target opportunities include cloud integration, master data management, data integration for next-generation analytics, and data security.
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.
