CPPIB teamed up with European private equity firm Permira in the deal, which will take tech firm Informatica private
TORONTO—Canada Pension Plan Investment Board (CPPIB) and U.S. partner Permira have inked a friendly deal to buy Informatica Corp. for about US$5.3 billion.
California-based Informatica has about 5,500 employees who serve organizations that want to manage large-scale information assets.
CPPIB’s head of private investments said Informatica provides the Canadian pension fund with an opportunity to tap into a stable base of revenue with potential for future growth.
“We look forward to partnering with the Informatica team and the Permira funds to accelerate the company’s growth and to support Informatica’s continued market leadership in product innovation,” said CPPIB senior managing director Mark Jenkins.
CPPIB says it will have a significant interest in Informatica, which will be taken private, but said the amount of each partner’s investment wasn’t being disclosed.
Canada Pension Plan Investment Board invests funds that aren’t currently needed to pay retirement benefits to members of the Canada Pension Plan. As of Dec. 31, it had $238.8 billion of assets under management.
Under the deal, shareholders of the data and software company will receive $48.75 in cash per share, marking a 10 per cent premium to Monday’s closing price of US$44.22.
The deal will take the company private and it is expected to be completed in either the second or third quarter.
The Redwood City, California-based company helps other companies organize and store data.
Its shares jumped rose $2.37, or 5.2 per cent, to US$48.20 on premarket trading.