Salesforce, the global leader in sales management solutions, has acquired Own, an Israeli startup specializing in secure data backup and management. The deal, completed on November 18 for $1.9 billion in cash, marks a significant milestone for Israel’s tech industry. It stands as the largest Israeli M&A deal of 2024 and ranks among the top ten acquisitions in the country’s history.
This acquisition is Salesforce’s largest since its $28 billion purchase of Slack in 2021. It also highlights Salesforce’s continued interest in Israeli innovation. In September, the company acquired Zoomin, another Israeli software firm specializing in data management.
About Own and Its Rapid Rise
Own, founded in 2015, has established itself as a trusted provider of secure SaaS data management solutions. The company’s tools help businesses protect, manage, and utilize critical data stored across various software platforms. With over 7,000 customers worldwide, Own serves industries ranging from finance to healthcare.
In August 2021, Own reached a valuation of $3.35 billion. A significant part of this valuation came from Salesforce, which already owned a 10% stake in the company. The startup operates offices in key global hubs, including Tel Aviv, California, New Jersey, London, Paris, and Hyderabad.
Significance of the Acquisition
This acquisition strengthens Salesforce’s portfolio in data management and security. SaaS data is growing exponentially, and companies face challenges in safeguarding and leveraging this data. Own’s innovative solutions address these issues, making it a strategic fit for Salesforce.
Marc Benioff, CEO of Salesforce, emphasized the importance of data management in today’s business landscape. “Businesses rely on their data to drive growth, make decisions, and ensure compliance,” he stated. “The addition of Own enhances Salesforce’s ability to offer robust solutions that protect and empower our customers.”
The acquisition is expected to enhance Salesforce’s capabilities in backup, recovery, and data activation. These features are increasingly critical for enterprises dealing with complex IT environments and regulatory requirements.
A Major Win for Israeli High-Tech
Israel, known as the “Startup Nation,” has seen many successful tech acquisitions. Own’s $1.9 billion deal sets a new benchmark for 2024. It reflects the strength of Israel’s high-tech ecosystem and its appeal to global technology giants.
Own’s CEO expressed pride in the company’s journey and the opportunity to join Salesforce. “This marks a new chapter for Own,” the CEO said. “We look forward to accelerating innovation and continuing our mission with Salesforce.”
The deal also highlights Israel’s growing influence in the global tech industry. Startups in the country have attracted significant investments and partnerships, particularly in cybersecurity, AI, and data management.
Salesforce’s Strategic Acquisitions in 2024
This year, Salesforce has made two notable acquisitions in Israel. In September, it acquired Zoomin, a developer of advanced data management software. The Zoomin deal showcased Salesforce’s focus on improving customer experience through better data insights.
Own complements this strategy by addressing data security and activation. Together, these acquisitions position Salesforce as a leader in end-to-end SaaS data solutions. The company’s expanded offerings aim to help businesses maximize the value of their software investments.
Salesforce has a history of strategic acquisitions. These deals enable the company to enhance its product portfolio and stay ahead of market trends. By acquiring innovative startups, Salesforce gains access to cutting-edge technology and talent.
Own’s Unique Approach to SaaS Data Management
Own’s solutions focus on three core areas: protection, management, and activation. These capabilities are critical for businesses relying on SaaS platforms to run their operations.
- Data Protection
Own offers robust tools for data backup and recovery. These solutions ensure business continuity and protect against data loss caused by cyberattacks, system failures, or human errors. - Data Management
Managing large volumes of SaaS data can be challenging. Own simplifies this process by providing tools to organize, classify, and monitor data across multiple platforms. - Data Activation
Own helps businesses unlock the potential of their data. Its solutions enable users to extract insights, automate processes, and improve decision-making.
These features have made Own a trusted partner for businesses worldwide. The startup’s customer base includes enterprises of all sizes, from small businesses to Fortune 500 companies.
The Road Ahead for Salesforce and Own
The integration of Own into Salesforce’s ecosystem will likely result in new product offerings. Salesforce plans to leverage Own’s technology to enhance its existing services, such as Sales Cloud and Service Cloud. These enhancements will provide customers with more comprehensive data solutions.
Own’s team will also benefit from Salesforce’s global reach and resources. This partnership is expected to accelerate the development of new features and products. Customers can look forward to improved tools for managing and activating their data.
The acquisition also opens up opportunities for joint innovation. Salesforce and Own can collaborate on developing next-generation solutions for data management and security. These innovations will address emerging challenges and meet the evolving needs of businesses.
Salesforce’s Commitment to Innovation
Salesforce’s acquisitions reflect its commitment to staying at the forefront of technology. The company continues to invest in areas that drive value for its customers. Data management, AI, and customer experience remain top priorities.
The acquisition of Own aligns with Salesforce’s broader strategy of empowering businesses with advanced tools. These tools enable organizations to operate efficiently, adapt to changes, and achieve their goals.
Salesforce’s track record of successful acquisitions demonstrates its ability to integrate new technologies effectively. Previous deals, such as Slack and Tableau, have strengthened the company’s position in collaboration and analytics.
Impact on the SaaS Market
The SaaS market is highly competitive, with companies vying to offer the best solutions. Salesforce’s acquisition of Own reinforces its leadership in this space. The deal sends a clear message about the importance of data management in the SaaS ecosystem.
Businesses are increasingly seeking solutions that address data security, compliance, and usability. Salesforce’s expanded capabilities position it as a trusted partner for organizations navigating these challenges.
The acquisition also underscores the value of innovation in the SaaS industry. Startups like Own play a vital role in driving progress and meeting the demands of modern businesses.
Key Takeaways from the Deal
- Largest Israeli M&A of 2024
The $1.9 billion acquisition of Own is the biggest Israeli high-tech deal this year. It highlights the strength of Israel’s tech ecosystem. - Strategic Fit for Salesforce
Own’s solutions complement Salesforce’s offerings, enhancing its capabilities in data management and security. - Global Impact
The deal strengthens Salesforce’s position as a leader in the SaaS market. It also reflects Israel’s growing influence in global technology. - Focus on Innovation
Salesforce continues to invest in cutting-edge technologies through strategic acquisitions. These deals enable the company to address emerging challenges and create value for its customers.
Conclusion
Salesforce’s acquisition of Own marks a significant milestone in the tech industry. The deal enhances Salesforce’s capabilities in SaaS data management and reinforces its commitment to innovation. For Own, the acquisition provides an opportunity to scale its solutions and reach new markets.
This acquisition is a win for both companies and their customers. It sets the stage for future growth and innovation in the SaaS ecosystem. As data continues to drive business success, Salesforce and Own are well-positioned to lead the way.