Cloud computing company Salesforce has announced plans to acquire Own Co., a startup specialising in cloud data backup tools, for $1.9 billion in cash. The transaction is expected to close in the fourth quarter of Salesforce’s fiscal year 2025, pending regulatory approval.
Own, previously known as OwnBackup, was valued at $3.35 billion during a funding round in 2021, in which Salesforce Ventures participated. This acquisition marks a return to larger deals for Salesforce, following CEO Marc Benioff’s announcement in 2022 about dissolving the company’s mergers and acquisitions committee.
The decline in Own’s valuation reflects a broader slowdown in the software industry. As Benioff stated during Salesforce’s May earnings call, “We’re going to be looking at products organically, but, yes, we will continue to look at products inorganically. But as we’ve committed to you, if we’re looking at a large-scale acquisition, we’re going to make sure that it is not dilutive to our customers, that it’s accretive, that it has the right metrics.”
Salesforce believes this acquisition will enhance its data security offerings.
“This proposed transaction underscores our commitment to providing secure, end-to-end solutions that protect our customers’ most valuable data and navigate the shifting landscape of data security and compliance,” Steve Fisher, president and GM of Einstein 1 Platform and Unified Data Services at Salesforce, said in a press release.
Meanwhile, Own CEO Sam Gutmann also expressed excitement about the deal.
“Together with Salesforce, we will deliver even greater value for our customers by driving innovation, securing data, and ensuring compliance in the world’s most complex and highly regulated industries,” he stated.
