Canada Pension Plan Investment Board is teaming up with a European private equity firm in a $5.3-billion (U.S.) all-cash deal to take business software company Informatica private.
Redwood, Calif.-based Informatica said on Tuesday it has struck a definitive agreement to be acquired by a company controlled by private equity firm Permira Advisers Ltd. and CPPIB.
The agreement values Informatica – a provider of enterprise data integration software and services – at $48.75 per share.
"This transaction represents an excellent opportunity to acquire a market-leading enterprise data integration solutions provider," said Mark Jenkins, senior managing director and global head of private investments at CPPIB.
"Informatica's differentiated suite of software solutions, stable base of recurring revenues and strong potential for future growth make this a highly attractive investment for CPPIB."
Among Informatica's specialty areas are Cloud integration, data integration for Big Data projects and mobile device management.
The deal is expected to close in the second or third quarter of 2015, subject to the standard regulatory and shareholder approvals.
CPPIB manages the investment portfolio of the Canada Pension Plan.
The $238.8-billion fund has been adding to its diversifying portfolio with a string of investments in a wide range of sectors recently, including a $2.1-billion (Canadian) deal to buy student dormitories in the U.K. and $2.9-billion for at least 30 per cent of Associated British Ports.
Another big Canadian institutional investor, Ontario Teachers' Pension Plan, made a deal similar to the Informatica one last December when it joined U.S. private equity firm Thoma Bravo LLC in the $3.6-billion acquisition of San Francisco-based Riverbed Technology Inc., which sells computer networking equipment as well as IT services and support.
Financial advisers to Permira and CPPIB were BofA Merrill Lynch, Goldman Sachs & Co., Macquarie Capital and Union Square Advisors LLC.
Merrill Lynch, Credit Suisse, Goldman, Macquarie, Morgan Stanley, Nomura and RBC Capital Markets are acting as joint bookrunners on the financing.