On Tuesday morning, Informatica (INFA) announced that it will be acquired by Permira Advisers and the Canada Pension Plan Investment Board. Here’s what the deal means for mutual fund investors.
In the deal, Informatica will be acquired and taken private by Permira Advisers and the Canada Pension Plan Investment Board in a $5.3 billion deal, or $48.75 per share. This deal represents a 6% upside from Monday’s price of $45.83.
Sohaib Abbasi, Informatica’s Chairman and CEO commented: “After careful consideration and deliberation of strategic alternatives, our Board of Directors unanimously concluded that the sale of Informatica to the Permira funds and CPPIB is in the best interest of all Informatica stakeholders.”
“While delivering immediate compelling value to our shareholders, we remain committed to the long-term success of our customers, partners, and employees. Permira and CPPIB share both our vision for Informatica to power the data-ready enterprise and our conviction in sustained long-term growth.”
Another Technology Company Acquired
This deal is one of many in recent months involving private equity transactions. Software companies have been targeted for these deals including the acquisition of Compuware Corp. This deal will be in largest leveraged acquisition so far in 2015.
Mutual Funds to Watch
Investors interested in INFA may also consider the following mutual funds as an alternative to investing directly in the stock. The funds below currently hold the largest stakes in the company.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| ACRNX | Columbia Acorn | 2.98% |
| JMIVX | Perkins Mid Cap Value | 2.16% |
| NAESX | Vanguard Small Cap Index | 1.80% |
The Bottom Line
The funds listed above allow investors to gain exposure to INFA while remaining diversified. Investors interested in CHTR should also consider Microsoft (MSFT) or Oracle (ORCL).
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