Salesforce, a global leader in customer relationship management (CRM) software, has completed its acquisition of Own, an Israeli startup specializing in cloud data backup and recovery solutions. The $1.9 billion cash deal, announced in September, was finalized on Monday. Own, founded in 2015, serves around 7,000 customers and was last valued at $3.35 billion in August 2021.
Salesforce already owned a 10% stake in the company prior to the acquisition. In a statement, Own expressed excitement about joining the Salesforce team, saying, “Joining the Salesforce team marks a new chapter for Own, and we’re excited to continue our mission of helping customers protect, manage, and activate their SaaS data.
This acquisition marks Salesforce’s largest purchase since its $28 billion acquisition of Slack in 2021. It also represents the largest high-tech deal in Israel this year and ranks among the top ten in the country’s history.
Own’s investors from its most recent funding round in August 2021, which valued the company at $3.3 billion, may face losses as the acquisition price falls below that valuation.
Salesforce to streamline operations with layoffs
The round was led by B Capital Group and Alkeon Capital.
Major beneficiaries of the acquisition include Horizon Capital, Vertex, Insight Partners, BlackRock, Tiger Global, and Innovation Endeavors, all of which were early backers of Own. For Salesforce, the acquisition strengthens its focus on data security and backup solutions. The deal was overseen by attorney Erez Mizrachi, co-founder and head of the high-tech department at FWMK, who represented Own.
Following the acquisition, some roles at Own may no longer be necessary, potentially leading to layoffs as Salesforce integrates the startup into its broader suite of products and streamlines operations. The exact number of employees affected has not been disclosed. Own has offices in Tel Aviv, California, New Jersey, London, Paris, and Hyderabad.
The acquisition further cements Israel’s reputation as a “Startup Nation” known for producing lucrative companies and significant returns for investors.
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