Salesforce Inc. said on Thursday it agreed to acquire data protection and data management solutions startup Own for $1.9 billion to strengthen data security, privacy, and compliance across its platform.
The deal comes at a time when customers are increasingly focused on mitigating data loss due to system failures, human error, and cyberattacks. Own's technology will complement Salesforce's existing offerings, such as Salesforce Backup, Shield, and Data Mask and enables Salesforce to offer a more comprehensive data protection and loss prevention set of products.
The Data Platform of Own provides data archiving, seeding, security, and analytics capabilities that help customers ensure the availability, compliance, and security of their software-as-a-service (SaaS) data. Own also helps organizations leverage their historical data to optimize decision-making and gain a competitive advantage.
"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," said Steve Fisher, President and GM, Einstein 1 Platform and Unified Data Services said in a statement.
Salesforce expects the acquisition to start adding to its cash flow from the second year following the close of the transaction. The deal is expected to close in the fourth quarter of Salesforce's fiscal year 2025.
Salesforce's ownership of Own would mean the latter's growth in spheres of data security and privacy products. The payment will be made in cash, Reuters reported.
"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," Fisher added.
Own is backed by prominent investors like Salesforce Ventures, BlackRock Inc., and Tiger Global. The company changed its name from OwnBackup in October.
Own's website highlights its major relationships with Microsoft Dynamics 365 and ServiceNow, two of the industry heavyweights, and its more than $500 million in funding from top investors including BlackRock, Salesforce Ventures, and Tiger Global. A statement from the corporation stated that it was valued at $3.35 billion after a 2021 fundraising round.
The acquisition of Own was Salesforce's second acquisition this week. On Tuesday, Salesforce announcied its deal to acquire AI voice agent firm Tenyx, but did not disclose the deal's value. The deal is expected to close by the third quarter, with Tenyx's CEO, Itamar Arel, and CTO, Adam Earle, joining Salesforce and their team. The California-based startup, founded in 2022, boasts a client base spanning leading industries such as e-commerce, healthcare, hospitality, and travel.
