Salesforce, a leading cloud software company, saw its shares drop by 7% on Monday following reports that the company is engaging in advanced discussions to acquire data-management firm Informatica. In response to these rumors, Informatica's shares also experienced a decline of 6%.

Informatica currently boasts a market capitalization exceeding $10 billion, making it an attractive prospect for Salesforce. If the acquisition goes through, it would mark Salesforce's largest purchase since acquiring Slack for approximately $28 billion in 2021.

The Wall Street Journal, which initially reported on the ongoing talks, revealed that the proposed deal price is lower than Informatica's closing stock price of $38.48 on Friday.

While details regarding the size and structure of the potential transaction remain unclear, there have been indications that an official announcement could be imminent, according to a Reuters article.

Should this acquisition materialize, it would underscore Salesforce's commitment to expanding its capabilities in data management and further solidify its position in the competitive tech industry. Prior to the Slack acquisition, Salesforce made notable acquisitions, including the purchase of data visualization company Tableau for $15.3 billion in 2019 and MuleSoft for $6.5 billion in 2018.

Both Salesforce and Informatica have chosen not to comment on the reports, leaving investors eagerly awaiting further updates regarding the potential deal.

This news comes at a time when the tech industry is witnessing significant market fluctuations, with investors closely scrutinizing potential opportunities for growth and consolidation. As such, the outcome of these discussions will undoubtedly have far-reaching implications for both Salesforce and Informatica, as well as the broader tech landscape.

Investors and industry experts will be closely monitoring any developments in the days to come, as the potential acquisition of Informatica could mark a significant milestone in Salesforce's expansion strategy.