Salesforce Buys Own Company For $1.9B To Boost Data Security

In the last few years, the need for comprehensive and robust data security, data management and data protection platforms capable of reducing data loss and data breaches has risen exponentially.

To deliver such services, Salesforce, the world's #1 AI CRM, has announced a new agreement with Own Company, a leading provider of data protection and data management solutions, to enhance its current offerings.

So, what did the two companies reveal about their new deal? Let’s explore!

What Is The Salesforce Agreement With Own Company About?

Through a news release published on its website, Salesforce announced that it has signed a definitive agreement to acquire Own Company for approximately $1.9 billion in cash.
The transaction is expected to close in Q4 2025 of Salesforce’s fiscal year 2025 and is subject to regulatory approvals and customary closing conditions.
The transaction value represents the company's net value excluding around 10% of shares already owned by Salesforce and is subject to customary purchase price adjustments.
As such, Own Company has been a Salesforce Ventures portfolio company as well as a Salesforce AppExchange partner since 2012.
As per the announcement, the deal isn’t expected to impact Salesforce’s fiscal year 2025 financial guidance (announced on August 28) or Salesforce’s capital return program.
Furthermore, the company is expected to “achieve accretion on a free cash flow basis” in the second year following the closure of the deal.

What Does The Acquisition Of Own Company Bring Salesforce?

Own Company comes in with over 7,000 customers as a trusted ally to safeguard mission-critical data.
The company’s Own Data Platform provides data archiving, seeding, security and analytics capabilities enabling availability, compliance and security of mission-critical SaaS data.
This includes allowing organizations to use their historical data to gain deeper insights and optimize decision-making.
Own Company’s capabilities blended with Salesforce’s offerings, such as Salesforce Backup, Shield, and Data Mask will enable Salesforce to provide more comprehensive data protection and loss prevention services.
The move comes at a time when businesses are emphasizing the mitigation of data loss due to system failures, human error and cyberattacks, especially in the wake of harmful AI-powered tools.
The acquisition adds to Salesforce’s aim of investing in cloud-native data protection solutions to enhance its Platform Data Security, Privacy and Compliance products.

TechDogs-"An Image With The Logos Of Salesforce And Own Company"

Source

What Did Salesforce And Own Company Executives Say?

Steve Fisher, President and GM, Einstein 1 Platform and Unified Data Services, Salesforce, 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.”
[Contd.] “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.”
Sam Gutmann, CEO, Own Company, said, “We’re excited to join forces with Salesforce, a company that shares our commitment to data resilience and security. 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.”
[Contd.] “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.”

Do you think this move will help Salesforce grow its customer base in the data management and security market sector and help it retain its leading position in the industry? Do you think its competitors should make similar moves?

Let us know in the comments below!

First published on Mon, Sep 9, 2024

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Data Center Backup SolutionsData Management PlatformsData Management Data Protection Data Privacy Salesforce Own Company Acquisition Data Loss

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