Salesforce buys Israeli data protection co Own for $1.9b

US cloud software giant Salesforce (NYSE: CRM) announced that it has signed a definitive agreement to acquire Israeli data protection and data management services company king (Formerly known as OwnBackup). Salesforce says it will pay about $1.9 billion in cash, the net value of the 10% stake it currently holds in Own, giving the Israeli company a $2.1 billion valuation. OwnBackup was named one of the 10 most promising startups of 2020 by Globe.

Own has developed a platform that provides businesses with backup to protect against loss of essential data due to various human and malicious errors. Over the years, it has developed expertise in Salesforce products, which also became a shareholder in the company in 2021.

For customers who use its backup tools, the company offers a range of additional services, such as the option to move some less important information to a reduced external storage or set criteria for when to delete customer data, in order to comply with the strictest privacy rules in the world. In many companies, it is common practice to test new processes in a Salesforce test environment, before moving to the real version. To make the experience more realistic, Own allows real data to be injected into the test environment, with sensitive customer data automatically removed.

The company was founded by Israelis Ariel Berkman and Uri Yankelev, and was later joined by American businessman Sam Gutman (CEO).

“We are excited to partner with Salesforce, a company that shares our commitment to data resilience and security,” said Gutman. “As digital transformation accelerates, our mission has expanded from preventing data loss in the cloud to helping customers protect their data, unlock business insights, and accelerate AI-powered innovation. Together with Salesforce, we will deliver greater value to our customers by driving innovation, securing data, and ensuring compliance in the world’s most complex and regulated industries.”

“Data security has never been more important, and Own’s proven expertise and products will enhance our ability to deliver robust 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, integrated solutions that protect our customers’ most valuable data and address the changing data security and compliance landscape.”

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

This article was published in Globes, Israeli Business News – en.globes.co.il – on September 6, 2024.

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