Breaking Down the Deal
In a significant move, Salesforce has acquired New Jersey-based data management and protection solutions provider Own Company for $1.9 billion in cash. This deal marks Salesforce’s largest acquisition since its purchase of Slack for $27.7 billion in 2021.
Acquisition Details
The acquisition price is $1.9 billion in cash, after subtracting the value of shares that Salesforce already owns in Own Company. The company has reportedly considered purchasing data management software firm Informatica earlier this year but ultimately decided against it.
In a press release, Salesforce GM Steve Fisher stated that the acquisition underscores the company’s commitment to providing secure, end-to-end solutions that protect customers’ most valuable data.
Why Data Security Matters
Data security has never been more critical. With the increasing threat of ransomware and data center disasters like the fire that hit France’s OVH in 2021, businesses face significant challenges related to data management and protection.
According to market analytics firm KBV Research, the global data backup and recovery sector was worth $12.9 billion in 2023, growing at a compound annual growth rate of 10.9% from 2017 to last year.
The Growth of Data Backup and Recovery
The reasons for this growth are multifaceted:
- Ransomware threats: Businesses face increasing risks related to ransomware attacks, which can result in significant data loss and financial losses.
- Data center disasters: Disasters like the one that hit OVH in 2021 highlight the importance of having robust data backup and recovery solutions in place.
- Regulatory requirements: Data management-related regulations like the EU AI Act are coming into force, with strict data retention and provenance stipulations.
What Does This Acquisition Mean for Salesforce?
Own Company has close to 7,000 customers and hundreds of employees. The company offers a portfolio of data archiving, seeding, security, and analytics capabilities that have greatly expanded beyond its early product.
CEO Sam Gutmann sees Own complementing Salesforce’s existing data management tooling and enabling the company to offer a more comprehensive data protection and loss prevention set of products.
Own Company’s Expertise
As my colleague Ron Miller previously wrote, the majority of Own Company’s backup and recovery business involves the Salesforce ecosystem. With this acquisition, Salesforce expects to enhance its ability to offer robust data protection and management solutions to its customers.
Regulatory Approvals
The transaction is subject to regulatory approvals and customary closing conditions. Salesforce expects the deal to close in Q4 of its fiscal year 2025.
A Return to Big Acquisitions?
This acquisition could signal Salesforce’s return to big deals after the company said it would shift away from M&A last year, under pressure from activist investors. In recent weeks, Salesforce has closed smaller acquisition deals, including purchasing startups PredictSpring and Tenyx.
Conclusion
The acquisition of Own Company by Salesforce marks a significant move in the data management and protection solutions space. With this deal, Salesforce is expanding its capabilities to provide more comprehensive data security solutions to its customers.
As the landscape of data management and protection continues to evolve, it will be interesting to see how this acquisition impacts the industry as a whole.
Related Topics
- Data Management: The importance of having robust data backup and recovery solutions in place
- Ransomware Threats: The growing threat of ransomware attacks on businesses
- Regulatory Requirements: The impact of regulations like the EU AI Act on data management practices
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