Informatica Announces Launch of Secondary Public Offering of Common Stock

Rhea-AI Summary

Informatica (NYSE: INFA) announced a proposed secondary public offering of 16,000,000 shares of Class A common stock by Permira and Canada Pension Plan Investment Board. The Selling Stockholders plan to grant underwriters a 30-day option for an additional 2,400,000 shares. Goldman Sachs & Co. serves as lead book-running manager. Informatica will not receive any proceeds from the sale. The offering will be conducted through an effective registration statement, prospectus supplement, and accompanying prospectus filed with the SEC.

Positive

• None.

Negative

• Significant secondary offering of 16M shares with potential additional 2.4M shares could create selling pressure
• Company receives no proceeds from the offering
• Large shareholders (Permira and CPPIB) reducing their stake signals potential lack of confidence

Insights

Financial Analyst

The secondary offering of 16 million shares with an additional 2.4 million share option represents a significant liquidation event by major shareholders Permira and Canada Pension Plan Investment Board. Based on current market value, this offering could be worth approximately $2.7 billion, assuming current market prices.

This large-scale selloff by institutional investors could create temporary downward pressure on the stock price due to increased supply. However, the broader float increase could potentially improve trading liquidity and make the stock more accessible to retail investors. The company's fundamentals remain unchanged as it receives no proceeds from this transaction.

The timing suggests these major shareholders are taking advantage of INFA's recent stock performance to reduce their positions. This type of exit by private equity investors is a normal part of their investment cycle, though the size is notable relative to INFA's market cap.

REDWOOD CITY, Calif.--(BUSINESS WIRE)-- Informatica (NYSE: INFA), a leader in enterprise AI-powered cloud data management, today announced the commencement of a proposed underwritten registered secondary offering of 16,000,000 shares of its Class A common stock (the “Offering”) by certain funds associated with Permira and Canada Pension Plan Investment Board (together, the “Selling Stockholders”). In connection with the Offering, the Selling Stockholders intend to grant the underwriter a 30-day option to purchase up to 2,400,000 additional shares. Informatica will not receive any proceeds from the sale of its Class A common stock by the Selling Stockholders in the Offering.

Goldman Sachs & Co. LLC is acting as the lead book-running manager for the Offering.

The Offering will be made only by means of an effective registration statement, a prospectus supplement and an accompanying prospectus. Informatica has filed a registration statement (including a base prospectus) on Form S-3 and a preliminary prospectus supplement with the U.S. Securities and Exchange Commission (the “SEC”), for the Offering to which this communication relates. The registration statement automatically became effective on November 7, 2024. Before you invest, you should read the prospectus in that registration statement, the prospectus supplement and other documents Informatica has filed with the SEC for more complete information about Informatica and this Offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, a copy of the prospectus supplement relating to the Offering may be obtained by contacting: Goldman Sachs & Co., LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at 1-866-471-2526 or email at prospectus-ny@ny.email.gs.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities law of any such state or jurisdiction.

About Informatica

Informatica (NYSE: INFA), a leader in enterprise AI-powered cloud data management, brings data and AI to life by empowering businesses to realize the transformative power of their most critical assets. We have created a new category of software, the Informatica Intelligent Data Management Cloud™ (IDMC). IDMC is an end-to-end data management platform, powered by CLAIRE AI, that connects, manages and unifies data across any multi-cloud or hybrid system, democratizing data and enabling enterprises to modernize and advance their business strategies. Customers in approximately 100 countries, including more than 80 of the Fortune 100, rely on Informatica to drive data-led digital transformation. Informatica. Where data and AI come to life.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements in this release include statements regarding the terms of the proposed Offering and the completion, timing and size of the proposed Offering. These forward-looking statements are subject to risks and uncertainties, including the risks described in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, and other filings and reports we make with the SEC from time to time. The forward-looking statements in this press release are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241107302639/en/

Investor Relations:

Victoria Hyde-Dunn

vhydedunn@informatica.com

Source: Informatica

FAQ

How many shares are being offered in Informatica's (INFA) secondary offering?

The secondary offering includes 16,000,000 shares of Class A common stock, with an additional 30-day option for underwriters to purchase up to 2,400,000 more shares.

Will Informatica (INFA) receive any proceeds from the secondary offering?

No, Informatica will not receive any proceeds from the sale of Class A common stock by the Selling Stockholders in this offering.

Who are the selling stockholders in Informatica's (INFA) secondary offering?

The selling stockholders are certain funds associated with Permira and Canada Pension Plan Investment Board.

Who is the lead book-running manager for Informatica's (INFA) secondary offering?

Goldman Sachs & Co. is acting as the lead book-running manager for the offering.