Salesforce has agreed to acquire US-based data protection and data management solutions provider Own in an all-cash deal worth around $1.9bn. In acquiring the company, Salesforce aims to strengthen its data security, privacy, and compliance across the platform.
“As digital transformation accelerates, our mission has expanded from preventing data loss in the cloud to helping customers protect their data, unlock business insights, and accelerate AI-driven innovation,” said Own’s chief executive, Sam Gutmann. “Together with Salesforce, we’ll 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.”
Own Company 101
Incorporated in 2015, Own supports organisations in protecting and activating software-as-a-service (SaaS) data to transform their businesses. The firm helps institutions ensure the availability, security, and compliance of mission-critical data while exploring new ways to get deeper insights from it. Its platform offers data archiving, seeding, security, and analytics solutions, ensuring the availability, compliance, and security of mission-critical SaaS data.
Own caters to approximately 7,000 customers and has been a Salesforce Ventures portfolio company and a Salesforce AppExchange partner since 2012. According to Salesforce, its investment in pure cloud-native data protection solutions will expedite the growth of its platform for data security, privacy, and compliance products, while also enhancing its existing offerings, including Salesforce Backup, Shield, and Data Mask.
Additionally, Own’s integration is expected to advance Salesforce’s commitment to delivering secure, end-to-end solutions that protect customers’ data while leveraging artificial intelligence (AI) to analyse trends and forecast future growth.
Salesforce Einstein 1 Platform and Unified Data Services president and general manager Steve Fisher said: “Data security has never been more critical, and Own’s proven expertise and products will enhance our ability to offer robust data protection and management solutions to our customers.
“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.”
Subject to customary conditions, including the receipt of required regulatory approvals, the deal is anticipated to be completed in Q4 FY25.
Salesforce spending spree
Following the closing of the proposed acquisition, Salesforce aims to achieve accretion on a free cash flow basis beginning in the second year.
Over the years, Salesforce has been expanding its portfolio through strategic acquisitions to enhance collaboration tools, data analytics, integration platforms, and AI. In 2021, Salesforce acquired Slack Technologies for $27.7bn to integrate Slack’s messaging platform with its CRM tools, thereby boosting remote work capabilities.
In 2019, it purchased Tableau Software for $15.7bn to enhance its data analytics and visualisation offerings. Prior to that, Salesforce bought MuleSoft for $6.5bn to enable seamless data integration across systems.
In the current year, Salesforce continued its strategy by completing the acquisition of Airkit.ai, a low-code platform for AI-driven customer service applications. Last week, too, the company signed a definitive agreement to acquire Tenyx, a voice AI startup that creates natural and engaging conversational experiences to transform customer service.
Salesforce’s acquisition spree has raised concerns among investors who fear financial overextension could strain profitability and cash flow. Activist investors like Elliott Investment Management have previously pushed for more cost management and profitability, leading Salesforce to make strategic changes to improve margins and avoid a proxy fight.
Apart from the various acquisitions, Salesforce is investing $4bn in its UK business. As part of the investment, Salesforce, in June 2024, announced the opening of a new AI hub in London. Dubbed the Salesforce UK AI Center, it is both a meeting point between Salesforce staff, AI experts, and prospective clients and a facility for training and upskilling its workforce to use new models.
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