Salesforce Acquires Own Company for $1.9 Billion to Strengthen Data Protection Solutions
Salesforce, a leading provider of customer relationship management (CRM) solutions, has made a significant acquisition with the purchase of Own Company for $1.9 billion in cash. This marks Salesforce’s largest deal since acquiring Slack for $27.7 billion in 2021 and demonstrates the company’s commitment to providing secure and comprehensive data management solutions to its customers.
The acquisition of Own Company, previously known as OwnBackup, brings a range of enterprise-focused data backup tools and services to Salesforce’s portfolio. Own’s expertise in data management and protection will enhance Salesforce’s ability to offer robust data security solutions, a crucial aspect in today’s digital landscape where data breaches and cyber threats are prevalent.
Data security has become more critical than ever, and companies need reliable solutions to protect their valuable data. The global data backup and recovery sector is growing rapidly, with a market value of $12.9 billion in 2023, and it is projected to continue growing at a compound annual growth rate of 10.9% from 2017 to last year. This growth can be attributed to various factors, including the increasing threats related to ransomware, data center disasters, and the implementation of data management regulations in many countries.
Own Company has already established itself as a leader in the data backup and recovery segment. With a valuation of $3.35 billion as of August 2021, the company has attracted significant investment from prominent investors such as Tiger Global, BlackRock, and Salesforce Ventures. Own’s success is largely due to its focus on the Salesforce ecosystem, with the majority of its backup and recovery business involving Salesforce applications.
The acquisition of Own Company aligns with Salesforce’s long-term strategy to offer comprehensive data protection and loss prevention solutions. By combining Own’s capabilities with Salesforce’s existing data management tools, the company aims to deliver even greater value to its customers. This acquisition will enable Salesforce to provide a more comprehensive suite of products that address the evolving needs of businesses operating in complex and highly regulated industries.
The transaction is expected to close in Q4 of Salesforce’s fiscal year 2025, subject to regulatory approvals and customary closing conditions. This acquisition could signify Salesforce’s return to larger-scale acquisitions after a period of focusing on smaller deals. It demonstrates the company’s commitment to innovation and its recognition of the importance of data resilience and security in today’s business landscape.
In conclusion, Salesforce’s acquisition of Own Company for $1.9 billion reinforces its dedication to providing secure and robust data management solutions. By integrating Own’s expertise and products, Salesforce aims to enhance its data protection and management offerings, offering its customers comprehensive solutions that address their evolving needs. This acquisition further solidifies Salesforce’s position as a leader in the CRM market and demonstrates its commitment to staying at the forefront of technological advancements in data management and protection.