Market Beats | Salesforce to Acquire Informatica for $8 Billion; Alibaba Weighs Reducing Stake in ZTO Express; US Business Equipment Orders Fall Most Since October; Lord Abbett Suffers $60 Million Loss on CMBS Deal; US Home Price Growth Slows in March; Trump Administration Moves to Cancel $100 Million in Federal Contracts With Harvard

—— Salesforce to Acquire Informatica for $8 Billion; Alibaba Weighs Reducing Stake in ZTO Express; US Business Equipment Orders Fall Most Since October; Lord Abbett Suffers $60 Million Loss on CMBS Deal; US Home Price Growth Slows in March; Trump Administration Moves to Cancel $100 Million in Federal Contracts With Harvard

1. Salesforce to Acquire Informatica for $8 Billion

Salesforce Inc. has reached an agreement to acquire cloud data management firm Informatica Inc. for approximately $8 billion, reviving a deal that fell through more than a year ago.

According to a joint statement released Tuesday, Informatica shareholders will receive $25 per share in cash. The deal is expected to close in early fiscal year 2027, with Salesforce funding the acquisition through a combination of cash and newly issued debt.

Informatica, based in Redwood City, California, has long been viewed as a prime acquisition target due to its strong cloud data management capabilities. Salesforce previously held takeover talks with the company in early 2023, but those discussions stalled over valuation disagreements.

The acquisition will expand Salesforce’s data integration capabilities and intensify competition with its existing data platform, MuleSoft. It also reflects a broader wave of consolidation in the software-as-a-service (SaaS) industry, and may face regulatory scrutiny given the overlap in services.

“Our acquisition strategy is methodical, patient, and decisive,” said Robin Washington, Salesforce’s president and chief operating and financial officer. “This proposed acquisition will be a key enabler for Salesforce’s next phase of AI-driven growth — and we will move quickly to integrate their capabilities.”

Informatica’s shares rose 5.8% in premarket trading Tuesday following the announcement, while Salesforce shares gained about 1%. Prior to the deal, Informatica’s stock had fallen 13% year-to-date, giving it a market value of $6.8 billion.

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2. Alibaba Weighs Reducing Stake in ZTO Express

Alibaba Group Holding Ltd. is exploring options to reduce its minority stake in express delivery firm ZTO Express (Cayman) Inc., including a potential sale of bonds exchangeable into ZTO shares, according to people familiar with the matter.

The Chinese e-commerce giant has held discussions with investment banks to evaluate the feasibility of such a transaction, the sources said. The deliberations are still preliminary, and Alibaba may ultimately decide not to proceed with the bond sale.

Alibaba acquired a 10% stake in ZTO Express for $1.38 billion in 2018, alongside other investors, to support its global logistics ambitions through its Cainiao logistics unit.

ZTO, headquartered in Shanghai, raised $1.4 billion in its 2016 IPO on the New York Stock Exchange and secured a similar amount in its Hong Kong secondary listing in 2020.

This year, ZTO’s US-listed shares have declined approximately 13%, leaving the company with a market value of around $13.6 billion.

A potential bond sale by Alibaba would follow a precedent set by Baidu Inc., which in March raised $2 billion through exchangeable bonds tied to its stake in Trip.com Group Ltd.

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3. US Business Equipment Orders Fall Most Since October

Orders for business equipment at US factories dropped in April by the most in six months, signaling growing caution among companies amid mounting uncertainty over tariffs and potential changes to tax policy.

According to Commerce Department data released Tuesday, core capital goods orders — a key measure of equipment investment that excludes aircraft and defense — declined 1.3% last month, the steepest drop since October. This followed a revised 0.3% increase in March. Shipments of these goods, which feed into GDP calculations, slipped 0.1%, marking their first decline in six months.

Overall durable goods orders — covering items meant to last at least three years — plunged 6.3% in April, largely due to a sharp drop in commercial aircraft bookings.

The report highlights businesses’ hesitancy to commit to capital spending as they await clearer signals on demand, trade policy, and tax legislation currently under debate in Congress.

Orders also fell across several key sectors, including motor vehicles, electrical equipment and appliances, communications equipment, and primary metals.

President Donald Trump’s evolving trade stance and proposed fiscal changes have left companies wary of making long-term investment decisions, leading to signs of a broader slowdown in capital goods demand.

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4. Lord Abbett Suffers $60 Million Loss on CMBS Deal

Lord Abbett & Co. has incurred more than $60 million in losses on a commercial mortgage-backed security (CMBS) linked to an office complex in suburban Kansas City, underscoring the ongoing distress in the market for older office buildings.

The asset manager held the majority of a $233 million CMBS backed by a mortgage on the Aspiria office campus — the former headquarters of Sprint Corp. — and was hit hard after the loan behind the bond was sold at a deep discount.

According to the latest monthly remittance report, the most junior tranche of the CMBS deal, with a face value of more than $65 million, was entirely wiped out earlier this month, with only $164 million recovered from the loan sale. As a result, bondholders also missed out on millions in interest payments.

This marks yet another setback for investors in single-asset, single-borrower (SASB) CMBS deals backed by aging office properties — a niche but high-risk corner of the real estate credit market that remains under pressure post-pandemic.

In December, holders of a $350 million CMBS tied to the Gas Company Tower in Los Angeles suffered nearly 50% losses, even on bonds that once held investment-grade ratings.

A representative for Lord Abbett declined to comment. Gary Oborny, CEO of Occidental Management, which manages and leases the Aspiria property, said in a statement that the company remains “focused on current and future leasing and development opportunities.”

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5. US Home Price Growth Slows in March

Home-price growth in the United States slowed in March as more listings entered the market without a corresponding rise in buyer activity, according to the latest S&P CoreLogic Case-Shiller data.

Nationally, home prices were up 3.4% year-over-year, a moderation from the 4% annual increase recorded in February.

High mortgage rates—hovering near 7%—combined with the sharp post-pandemic price surge, have put homeownership out of reach for many potential buyers, leading to softer demand. At the same time, housing inventory has been increasing, giving buyers more options and encouraging some sellers to make price concessions.

Still, in cities where supply remains tight, bidding wars continue. New York led the 20-city index with the highest year-over-year price gain at 8%, followed by Chicago at 6.5% and Cleveland at 5.9%. In contrast, Tampa saw the largest annual price decline among tracked cities, with prices falling 2.2%.

Despite the slowdown in annual growth, the monthly price momentum in March was strong. “The market experienced its strongest monthly gains so far in 2025,” said Nicholas Godec of S&P Dow Jones Indices. Eighteen of the 20 cities saw price increases on a month-to-month basis before seasonal adjustment, pointing to a broad-based spring recovery.

“This divergence between slowing year-over-year appreciation and renewed spring momentum highlighted how the housing market shifted from mere resilience to a broader seasonal recovery,” Godec added.

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6. Trump Administration Moves to Cancel $100 Million in Federal Contracts With Harvard

The administration of President Donald Trump is taking steps to terminate all remaining federal contracts with Harvard University, escalating its confrontation with the Ivy League institution. The contracts are estimated to be worth roughly $100 million, according to a person familiar with the matter.

A letter from Federal Acquisition Service Commissioner Josh Gruenbaum, seen by Bloomberg News, directs all federal agencies to review their existing contracts with Harvard and its affiliates, and to terminate any deemed non-essential. The letter urges agencies to shift services to alternative vendors where appropriate.

“The U.S. General Services Administration (GSA) is assisting all federal agencies in a review for termination or transition of their federal government contracts with Harvard University and affiliates,” the letter reads. “This review aligns with the Administration’s directive that all federal contracted services steadfastly uphold and advance agency strategic priorities.”

The move is the latest in a series of escalating actions by the Trump administration targeting Harvard, amid tensions over campus governance, allegations of antisemitism, and the university’s federal funding and tax-exempt status.

Federal agencies are required to report their actions or plans regarding each contract by June 6.

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7. Federal Reserve to Cut Workforce by 10%

The Federal Reserve plans to reduce its workforce by approximately 10% over the next couple of years, largely through attrition and a voluntary deferred resignation program offered to retirement-eligible employees.

Fed Chair Jerome Powell announced the initiative in a memo to staff, stating that the move aims to modernize operations and ensure the central bank remains appropriately sized to meet its statutory mission.

“I have directed the leadership of the Federal Reserve, here at the Board and across the System, to find incremental ways to consolidate functions where appropriate, modernize some business practices and ensure that we are right-sized and able to meet our statutory mission,” Powell said.

The voluntary deferred resignation program will be available to Board of Governors staff who are fully eligible to retire by December 31, 2027, similar to a program the Fed used in 1997.

As of 2023, the Fed reported 23,950 employees across its system. The 2024 budget had anticipated increasing staff to 24,553 — a 2.5% rise — making this a sharp reversal in hiring trajectory.

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