CPP partners with Permira to buy data firm Informatica for $5B

Canada's national pension plan is teaming up with a private equity group to buy a data company called Informatica for $5.3 billion US.

The Canada Pension Plan Investment Board and London-based private equity firm Permira have struck a deal to buy Informatica.

The Redwood City, Calif-based company helps other companies manage large amounts of customer and employee data more efficiently. It has about 5,500 employees.

Under the deal announced Tuesday, shareholders of the data and software company will receive $48.75 US in cash per share, marking a 10 per cent premium to Monday's closing price of $44.22. The company will be taken private.

The CPPIB manages funds that aren't currently needed to pay retirement benefits to members of the Canada Pension Plan. As of Dec. 31, it had $238.8 billion of assets under management, and has been deemed actuarially sound for the next 75 years.

"We look forward to partnering with the Informatica team and the Permira funds to accelerate the company's growth and to support Informatica's continued market leadership in product innovation," said CPPIB senior managing director Mark Jenkins.