Analyst Sees PE Bid For Informatica Corp. At $43-$50/Share

Informatica Corp.

is more likely to attract an offer from a private equity firm than from a strategic buyer, an analyst said Tuesday. The Redwood City, California-based big data software company closed Tuesday at $43.86, off $0.31 cents. Informatica is up about 17 percent since last month, when Paul Singer's hedge fund, Elliott Management disclosed an 8 percent stake and said it might push for a sale. Wedbush analyst Steve Koenig said a private equity buyer might pay between $43 and $50 a share for Informatica, while a strategic bidder might offer up to $55, according to a Bloomberg report. Koenig maintained a Neutral rating but raised his target on Informatica 7 percent to $45, saying he's become "more open minded" about a possible takeout following multiple media reports. Informatica wants to revive a sale process after an auction last month failed to produce satisfactory bids, according to a Reuters report that cited unnamed sources. http://www.reuters.com/article/2015/02/14/us-informatica-m-a-exclusive-idUSKBN0LH2JU20150214 Koenig sees a 55 percent probability a private equity buyer may materialize. But because Informatica's cloud revenue is only about 20 percent of total revenue, Koenig rates the chances that a strategic bidder surfacing at only 5 percent.