Salesforce has made a significant move into the data protection space by acquiring Own Co., a New Jersey-based provider of data management solutions, for $1.9 billion in cash. This marks Salesforce's largest acquisition since it bought Slack in 2021, indicating that the company may return to large-scale deals after pausing its M&A activity last year.
The acquisition allows Salesforce to enter the growing market for data protection, which has become critical as businesses across industries increasingly rely on vast amounts of data. However, the deal comes with risks. Own Co. has built its customer base by offering independent backup solutions for companies, including many that rely on Salesforce for their primary operations. These customers may be hesitant about relying on a data backup service owned by the same company they use for their core business functions, leading to potential concerns about data autonomy.
Own Co. had previously raised over $500 million in venture capital, achieving a $3.35 billion valuation during a funding round in 2021. Salesforce already had a stake in the company, holding about 10%, which is factored into the total purchase price. Other investors include well-known firms such as Insight Partners, BlackRock, and Tiger Global, underscoring the significant backing Own Co. received before the acquisition.
The deal signals Salesforce’s ambition to diversify its offerings and strengthen its position in the data management sector. This rapidly expanding market is becoming increasingly important as businesses focus more on securing and managing their data.