Key Takeaways
- Salesforce is expanding its reach into data security by purchasing startup Own for $1.9 billion in cash.
- The cloud software company said that with the advent of artificial intelligence, customers are increasingly aware of data security needs.
- The deal is expected to close during Salesforce’s fiscal fourth quarter of 2025.
Salesforce (CRM) is expanding its reach into data security by purchasing startup Own for $1.9 billion in cash.
Salesforce President Steve Fisher said the acquisition would add to Salesforce’s ability “to offer robust data protection and management solutions to our customers.”
Salesforce Says Customers Are Increasingly Focused on Data Security
The deal comes as Salesforce said “customers are increasingly focused on mitigating data loss due to system failures, human error, and cyberattacks.” It noted that the advent of artificial intelligence (AI) has raised awareness of the need to protect and manage access to data.
Salesforce’s venture capital division, Salesforce Ventures, was an investor in OwnBackup, Own’s previous name, taking part in a $240 million offering in August 2021. At the time, OwnBackup announced it was valued at nearly $3.5 billion.
The transaction is expected to be completed in Salesforce’s fiscal 2025 fourth quarter, which begins later this year. The company said the acquisition is not expected to affect its full-year guidance or its capital return program.
Salesforce shares were 1.4% lower at $242.66 in early trading Friday. They’ve lost close to 7% of their value so far this year.
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