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Salesforce is buying AI-powered cloud data management company Informatica in an approximately $8 billion deal.Informatica’s shareholders will receive $25 per share, a premium of about 11% from Friday’s closing price of $22.55.The transaction will give Salesforce access to Informatica’s data management capabilities.Informatica was taken private in 2015 by private equity firm Permira and the Canada Pension Plan Investment Board for about $5.3 billion. It went public again in 2021.“Joining forces with Salesforce represents a significant leap forward in our journey to bring data and AI to life by empowering businesses with the transformative power of their most critical asset their data,” Informatica CEO Amit Walia said in a statement on Tuesday. “We have a shared vision for how we can help organizations harness the full value of their data in the AI era.”Robin Washington, president and chief operating and financial officer at Salesforce, said in a statement that the acquisition will look to take advantage of Informatica’s capabilities quickly, particularly in areas such as the public sector, life sciences, health care, and financial services. San Francisco-based Salesforce is set to report its quarterly financial results Wednesday after the bell.Both companies’ boards have approved the deal, which is expected to close early in Salesforce’s fiscal 2027.Shares of Salesforce rose slightly before the market open, while Informatica’s stock jumped 5.7%. Michelle Chapman, AP Business Writer
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E-Commerce
With Memorial Day behind us, Americas summer travel season is now in full swing. While flyers should be aware of how to find great fares and the best apps to use when taking a vacation overseas, they should also be mindful of a few new rule changes going into effect at popular airlines, which could impact their trips. Those changes are happening at two of Americas most well-known airlinesSouthwest and Unitedand include alterations to the airlines’ free baggage and check-in policies, respectively. Heres what to know about the changes and when they go into effect. Southwests signature Bags Fly Free policy changes on May 28 On Wednesday, May 28, Southwests signature Bags Fly Free policy is changing. The policy has been a defining feature of the airline for decades, which lets Southwest fliers check up to two bags for free on any flight. However, come May 28, that policy will end for many Southwest passengers. As Fast Company previously reported, many passengers who book flights on Southwest from May 28 will now need to pay for checked baggage, although some will still be able to check bags for free. Heres how the new checked baggage policies work, according to Southwest: If you are a Rapid Rewards A-List Preferred Member or traveling on Business Select fares, youll still be able to check up to two bags for free on your flight. If you are an A-List Member or a Rapid Rewards Credit Cardmember, youll get one checked bag for free on each flight. But if you dont fall into the categories above, youll now be charged to check your first and second bags on each flight. Its important to note that these new baggage-check rules and fees only apply to flights booked on or after May 28, 2025. If you booked your flight before that date, youll still be able to take advantage of Southwests old Bags Fly Free policy even if the flight takes place after May 28. Uniteds check-in policy changes on June 3 On June 3, anyone flying on United will need to check in for their flight at least 45 minutes before departure, the airline confirmed with Fast Company. Previously, some passengers could check in as little as 30 minutes before their flight. Those who do not check in at least 45 minutes before their flight is scheduled to depart will be denied boarding starting June 3. Historically, United has allowed those flying without checked bags to check in by as little as 30 minutes before a domestic flight. Those on domestic flights with checked bags had a 45-minute check-in cutoff. In order to simplify things for gate staff and provide uniformity for passengers, United will now require anyone on a domestic flight with or without checked bags to check in at least 45 minutes before departure. “The change brings greater consistency for our customers by aligning with our current checked baggage deadline and the check-in policies followed by most other airlines,” a United spokesperson told Fast Company via email. It should be noted that the new 45-minute check-in rule only applies to domestic flights. For international flights, United requires passengers to check in at least 60 minutes before the scheduled departure. Uniteds check-in time limits can be found here.
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E-Commerce
More Klarna customers are having trouble repaying their “buy now, pay later” loans, the short-term lender said this week. The disclosure corresponded with reports by lending platforms Bankrate and LendingTree, which cited an increasing share of all “buy now, pay later” users saying they had fallen behind on payments.The late or missed installments are a sign of faltering financial health among a segment of the US population, some analysts say, as the nation’s total consumer debt rises to a record $18.2 trillion and the Trump administration moves to collect on federal student loans.Shoppers who opt to finance purchases through BNPL services tend to be younger than the average consumer, and a study from the Federal Reserve last year said Black and Hispanic women were especially likely to use the plans, which customers of all income levels are increasingly adopting.“While BNPL provides credit to financially vulnerable consumers, these same consumers may be overextending themselves,” the authors of the Federal Reserve study wrote. “This concern is consistent with previous research that has shown consumers spend more when BNPL is offered when checking out and that BNPL use leads to an increase in overdraft fees and credit card interest payments and fees.”As Klarna grows its user base and revenue, the Swedish company said its first-quarter consumer credit losses rose 17% compared to the January-March period of last year, to $136 million.A company spokesperson said in a statement that the increase largely reflected the higher number of loans Klarna made year over year. The percentage of its loans at a global level that went unpaid in the first quarter grew from 0.51% in 2024 to 0.54% this year, and the company sees “no sign of a weakened U.S. consumer,” he said. More consumers are using ‘buy now, pay later’ plans Buy now, pay later plans generally let consumers split payments for purchases into four or fewer installments, often with a down payment at checkout. The loans are typically marketed as zero-interest, and most require no credit check or a soft credit check.BNPL providers promote the plans as a safer alternative to traditional credit cards when interest rates are high. The popularity of the deferred payment plans, and the expanding ways customers can use them, have also sparked public attention.When Klarna announced a partnership with DoorDash in March, the news led to online comments about Americans taking out loans to buy takeout food. Similar skepticism emerged when Billboard revealed that more than half of Coachella attendees used installment plans to finance their tickets to the music festival.An April report from LendingTree said about four in ten users of buy now, pay later plans said they had made late payments in the past year, up from one in three last year. According to a May report from Bankrate, about one in four users of the loans chose them because they were easier to get than traditional credit cards.The six largest BNPL providers Affirm, Afterpay, Klarna, PayPal, Sezzle, and Zip originated about 277.3 million loans for $33.8 billion in merchandise in 2022, or an amount equal to about 1% of credit card spending that year, according to the Consumer Financial Protection Bureau. An industry that is coming under less regulatory scrutiny The federal agency said this month it did not intend to enforce a Biden-era regulation that was designed to put more boundaries around the fintech lenders.The rule treated buy now, pay later loans like traditional credit cards under the Truth In Lending Act, requiring disclosures, refund processing, a formal dispute process and other protections.The regulation, which took effect last year, also prevented borrowers from being forced into automatic payments or charged with multiple fees for the same missed payment.The Trump administration said its non-enforcement decision came “in the interest of focusing resources on supporting hard-working American taxpayers” and that it would “instead keep its enforcement and supervision resources focused on pressing threats to consumers, particularly servicemen and veterans.”Consumer advocates maintain that without federal oversight, customers seeking refunds or in search of clear information about BNPL fee structures and interest rates will have less legal recourse. There are risks to taking out installment loans Industry watchers point to consumers taking out loans they can’t afford to pay back as a top risk of BNPL use. Without credit bureaus keeping track of the new form of credit, there are fewer safeguards and less oversight.Justine Farrell, chair of the marketing department at the University of San Diego’s Knauss School of Business, said that when consumers aren’t able to make loan payments on time, it worsens the economic stress they’re already experiencing.“Consumers’ financial positions feel more spread thin than they have in a long time,” said Farrell, who studies consumer behavior and BNPL services. “The cost of food is continuing to go up, on top of rent and other goods so consumers are taking advantage of the ability to pay for items later.”The Consumer Federation of America and other watchdog organizations have expressed concern about the rollback of BNPL regulation as the use of the loans continues to rise.“By taking a head-in-the-sand approach to the new universe of fintech loans, the new CFPB is once again favoring Big Tech at the expense of everyday people,” said Adam Rust, director of financial services at the Consumer Federation of America. The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism. Cora Lewis, Associated Press
Category:
E-Commerce
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