Get ready — the second season is about to come out. No, we’re not talking about Squid Game, just yet. Instead, we’re talking about the data management software provider Informatica, which is ready to have a second go on the stock market six years after it was taken private. The company will float 29 million shares on the NYSE, priced between $29 and $23 per share. The IPO will raise $928m, giving Informatica a valuation close to $9b.
Informatica was taken private in 2015 for $5.3b by a consortium comprising of Permira Advisers and the Canada Pension Plan Investment Board. Back then, Informatica’s move followed that of its biggest rival Tibco, which Vista Equity Partners bought out for $4.3b. Vista’s acquisition of Tibco gave rise to a trend in which private equity firms acquired multibillion-dollar enterprise software companies. Fast forward six years and Vista Equity Partners is reportedly looking to sell Tibco.
why it matters
The timing of Informatica's IPO is anything but random. Informatica will follow the IPOs of Freshworks Inc and Toast Inc.