Salesforce to acquire Own Company for $1.9bn to boost data protection capabilities, shares dip

Salesforce (NYSE: CRM) has announced a definitive agreement to acquire Own Company, a leader in data protection and data management solutions, for approximately $1.9 billion in cash. The deal is net of the value of approximately 10% of Own’s outstanding shares already owned by Salesforce and is subject to customary purchase price adjustments. Salesforce’s share price reacted to the news, closing on September 5 at $246.12 USD, down 1.56 points (0.63%), and further dipping in after-hours trading to $245.94, down 0.18 points (0.074%).

The dip in Salesforce’s stock price following the acquisition announcement may reflect initial investor concerns about the large $1.9 billion cash deal, which is common for significant acquisitions. These concerns often relate to potential integration challenges, financial impacts, or the immediate effect on earnings. However, in the long term, this acquisition could bolster Salesforce’s position in data management and security, an area of growing importance given the rise in data breaches and compliance requirements.

Own has been a Salesforce AppExchange partner since 2012 and a Salesforce Ventures portfolio company, evolving from backup and recovery solutions to a full suite of data protection capabilities. Trusted by nearly 7,000 customers, Own provides data archiving, seeding, security, and analytics services to ensure data availability, compliance, and security for mission-critical SaaS data. Steve Fisher, President and General Manager of Einstein 1 Platform and Unified Data Services at Salesforce, emphasized the strategic importance of this acquisition: “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.” Sam Gutmann, CEO of Own, shared his enthusiasm: “Together with Salesforce, we’ll deliver even greater value for our customers by driving innovation, securing data, and ensuring compliance.”

With digital transformation accelerating and the advent of AI, the need for robust data protection solutions has never been more pressing. Salesforce aims to integrate Own’s capabilities to strengthen its Platform Data Security, Privacy, and Compliance products, enhancing offerings like Salesforce Backup, Shield, and Data Mask. The acquisition will enable Salesforce to provide a more comprehensive suite of data protection and loss prevention products, essential for safeguarding customers’ data and maximizing its value through AI-driven insights.

The transaction is expected to close in the fourth quarter of Salesforce’s fiscal year 2025, pending customary closing conditions and regulatory approvals. Salesforce does not anticipate any changes to its fiscal year 2025 financial guidance as a result of this acquisition. The company expects the acquisition to be accretive on a free cash flow basis starting in the second year after closing.

Salesforce has been actively expanding its portfolio through strategic acquisitions to enhance its product offerings. In 2021, Salesforce acquired Slack Technologies for $27.7 billion to bolster its collaboration tools and integrate with its CRM platform, enhancing remote work capabilities. In 2019, the company acquired Tableau Software for $15.7 billion, strengthening Salesforce’s analytics capabilities and enabling deeper insights and data visualization tools. In 2018, Salesforce purchased MuleSoft for $6.5 billion, providing an integration platform that allows Salesforce customers to connect data across different systems and applications seamlessly. These acquisitions, along with the latest purchase of Own Company, demonstrate Salesforce’s commitment to providing comprehensive, secure, and innovative solutions across its cloud ecosystem.