Salesforce to Acquire Own Company for $1.9 Billion

(Reuters) – Salesforce announced on Thursday it will acquire Own Company, a provider of data protection and management solutions, for $1.9 billion in cash to enhance its data security and privacy product offerings.

The acquisition comes as customers are increasingly prioritizing data loss prevention due to system failures, human error, and cyberattacks.

Salesforce (NYSE: CRM) expects to see accretion on a free cash flow basis starting in the second year after the deal’s closure, anticipated in the fourth quarter of fiscal 2025.

The deal is not expected to alter Salesforce’s fiscal year 2025 forecast or its capital return program.

Own Company has raised over $500 million in total funding from investors including BlackRock (NYSE: BLK), Salesforce Ventures, and Tiger Global, along with partnerships with ServiceNow (NYSE: NOW) and Microsoft (NASDAQ: MSFT) Dynamics 365.

Additionally, Salesforce has agreed to acquire Tenyx, a developer of AI-driven voice agents, to further its AI-based solutions, though details on the deal value were not disclosed.

Previously, under pressure from activist investors, Salesforce had outlined a strategy to double share buybacks and limit future acquisitions after dissolving its mergers and acquisitions committee. However, the California-based company is now revisiting acquisitions to rejuvenate its revenue growth.