Salesforce to Buy Data Protection Provider Own Company for $1.9 Billion

Salesforce said there is no change expected to the enterprise cloud company’s fiscal 2025 guidance and the deal will not impact its capital return program (Photo: Bloomberg)

2 minutes of reading Last update: Sep 6, 2024 | 8:36 AM IST

Salesforce said Thursday it will buy Own Company, a provider of data protection and management solutions, for $1.9 billion in cash, a move that will accelerate the company’s data security and privacy products.

The acquisition comes at a time when customers increasingly want to reduce the risk of data loss due to system failures, human error and cyberattacks.

Salesforce said it expects free cash flow to increase starting in the second year after the transaction closes, which is forecast to occur in the fourth quarter of fiscal 2025.

Salesforce said there is no expected change to the enterprise cloud company’s fiscal 2025 guidance and the deal will not impact its capital return program.

According to its website, Own has raised more than $500 million in funding from BlackRock, Salesforce Ventures and Tiger Global, among others, and has also partnered with ServiceNow and Microsoft Dynamics 365.

Salesforce said Tuesday it has agreed to acquire Tenyx, which develops AI-powered voice agents, to enhance its AI-based solutions. The deal was not valued.

Last year, under pressure from activist investors, Salesforce announced plans to double its stock buybacks and move away from acquiring more companies after dissolving its mergers and acquisitions committee.

The California-based company is currently considering acquisitions to accelerate revenue growth.

First published: Sep 6, 2024 | 8:36 AM IST