Salesforce Buys Own Company for $1.9B
- Salesforce to acquire Own Company for $1.9 billion
- Acquisition expected to boost Salesforce's platform growth
- Acquisition to contribute to Salesforce's free cash flow from second year
Salesforce Inc. has revealed plans to acquire Own Company, a firm specializing in data protection and data management, for an estimated $1.9 billion in cash. Own Company, which valued itself at $3.5 billion in 2021, has been a partner of Salesforce for over a decade and currently serves nearly 7,000 customers. Salesforce currently owns about 10% of Own Company.
The acquisition is viewed by Salesforce as a strategy to boost the growth of its platform data-security, privacy, and compliance products. The transaction is projected to close during Salesforce's fiscal fourth quarter of 2025, pending regulatory approval. Salesforce has indicated that the acquisition will not affect the financial outlook for fiscal 2025.
Furthermore, Salesforce expects that the acquisition will begin to contribute to its free cash flow from the second year following the transaction's close, and continue thereafter.