Salesforce buys Israeli data protection company for $1.9 billion

US cloud-based software giant Salesforce (NYSE: CRM) has announced that it has signed a definitive agreement to acquire Israel’s Own (formerly OwnBackup) data protection and data management services. Salesforce says it will pay about $1.9 billion in cash, minus the value of the 10% stake it currently owns in Own stock, giving the Israeli company a value of $2.1 billion. OwnBackup was selected as one of the 10 most promising startups of “Globus” in 2020.

Own has developed a platform that provides companies with backup to protect against the loss of important data due to various human and malicious errors. Over the years, he has developed expertise in Salesforce products, becoming a shareholder in the company in 2021.

To customers using backup tools, the company offers a number of additional services, such as the option to move some of the less important data to discounted external storage to comply with requirements, or to define criteria for when to delete customer data. the strictest privacy rules in the world. In many companies, it is customary to test new processes in a Salesforce test environment before moving to a live version. To make the experience more realistic, Own allows real data to be injected into the test environment, automatically removing sensitive customer data.

The company was founded by Israelis Ariel Berkman and Ori Yankelev, who were later joined by American entrepreneur Sam Gutmann (CEO).

Gutmann said, “We are excited to join forces with Salesforce, a company that shares our commitment to data continuity and security. As digital transformation accelerates, our mission has expanded from preventing data loss in the cloud to helping customers protect their data, unlocking Salesforce to accelerate innovation based on business insights and artificial intelligence. together, we will deliver even greater value for our customers by driving innovation, securing data and ensuring compliance in the world’s most complex and highly regulated industries.”

“Data security has never been more critical, and Own’s proven experience and products will enhance our ability to offer reliable data protection and management solutions to our customers,” said Steve Fisher, president and general manager of Einstein 1 Platform and Unified Data Services. “This proposed transaction underscores our commitment to providing secure, end-to-end solutions that protect our customers’ most valuable data and manage the changing data security and compliance landscape.”

One of Own’s earliest investors was Vertex Ventures Israel, which invested several tens of millions of dollars for a 13% stake, now worth $270 million. Later investors, including B Capital Group and Alkeon Capital, were less successful. They led the round in 2021, valuing the company at $3.35 billion, according to PitchBook. Insight Partners owns an estimated 15%-20% stake and has led several previous rounds, the most recent of which was a $1.5 billion valuation of the company in early 2021. OwnBackup has raised $507 million since its inception.

Globes, Israel business news – en.globes.co.il – published on September 6, 2024.

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