Salesforce acquisition, Own Co., cloud data backup, mergers and acquisitions, tech investment, startup acquisition, business growth, financial news, M

Salesforce has announced plans to acquire Own Co., a startup specializing in cloud data backup solutions, for $1.9 billion in cash. The deal, expected to close by January 2025 pending regulatory approval, will not affect Salesforce’s shareholder return initiatives and is projected to boost free cash flow from the second year after closing.

Own, previously known as OwnBackup, was valued at $3.35 billion during a 2021 funding round. Salesforce Ventures had previously invested in Own, reflecting ongoing interest in the company despite a recent decrease in its valuation due to broader market trends affecting software companies.

The acquisition marks a significant move for Salesforce, which had paused major acquisitions following Marc Benioff’s decision to eliminate the company’s mergers and acquisitions committee. This decision came amid scrutiny from activist investors over Salesforce’s past acquisitions, including MuleSoft and Slack, and their impact on profitability.

Despite a slowdown in investment interest for cloud software since 2021, driven by central banks’ interest rate hikes and enterprise IT budget cuts, Salesforce continues to invest in enhancing its portfolio. Own’s services extend beyond Salesforce to include backup support for Microsoft’s Dynamics and ServiceNow, reflecting a strategic diversification.

Salesforce has also announced plans to acquire other startups, including PredictSpring and Tenyx. The company maintains a commitment to ensuring that any large-scale acquisitions align with its financial metrics and customer interests.

In the context of recent acquisition talks, Salesforce had previously considered a $10 billion acquisition of Informatica, which was later dismissed by Informatica.