Data integration provider Informatica is to acquire Chicago-based lifecycle management firm Applimation for approximately $40m (£27.5m).

Applimation provides application data management software, including testing, archiving and security applications.

The company markets the solution at administrators who need a cost-effective way of managing increasing data volumes, while ensuring uninterrupted application performance for business users.

Applimation argues that the benefits of the software include a reduction in total cost of ownership for enterprise applications, and an increased return on investment for their implementation.

Out-of-the box software support, which the firm claimed is becoming more popular with new regulatory requirements, covers modules of Oracle and SAP applications, as well as those developed by the customer.

"By integrating Applimation with the Informatica platform, customers now have a single product portfolio to manage the various phases of their application data lifecycle, from data migration, test data management, archiving and application retirement," said Applimation chief executive Bob Markese.

Sohaib Abbasi, chairman and chief executive at Informatica, added, "Together we will offer customers a platform to access, integrate and trust all their active and archived data, while reducing total cost of ownership."

The deal is subject to the customary closing conditions, and is expected to be sealed within a matter of days, Informatica said.