US cloud-based software giant Salesforce (NYSE: CRM) has announced that it has signed a definitive agreement to acquire Israeli data protection and data management services company Own (formerly OwnBackup). Salesforce says it will pay about $1.9 billion cash, net of the value of the 10% stake it currently holds in Own shares thus giving a valuation of $2.1 billion for the Israeli company. OwnBackup was chosen as one of "Globes" 10 most promising startups in 2020.
Own has developed a platform that provides companies with backup to protect from the loss of essential data, as a result of various human and harmful errors. Over the years it has developed expertise in Salesforce products, which also became a shareholder in the company in 2021.
To customers who use its backup tools, the company offers a series of additional services, such as the option to transfer some of the less relevant information to discounted external storage or to define criteria for when to delete customer data, in order to comply with the world's strictest privacy regulations. In many companies, it is customary to test new processes in the Salesforce test environment, before moving to the real version. To make the experiment more realistic, Own allows real data to be entered into the test environment, while automatically removing sensitive customer data.
The company was founded by Israelis Ariel Berkman and Ori Yankelev, who were later joined by US entrepreneur Sam Gutmann (CEO).
Gutmann said, "We’re excited to join forces with Salesforce, a company that shares our commitment to data resilience and security. 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-driven innovation. Together with Salesforce, we’ll 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 expertise and products will enhance our ability to offer robust data protection and management solutions to our customers," said Steve Fisher, president and GM, 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 navigate the shifting landscape of data security and compliance."
One of the earliest investors in Own 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 have been less successful. They led a round in 2021, according to PitchBook at a company valuation of $3.35 billion. Insight Partners holds an estimated 15%-20% stake and has made a profit, having led several earlier rounds, the most recent of which was in early 2021 at a company valuation of $1.5 billion. OwnBackup has raised $507 million since it was founded.
Published by Globes, Israel business news - en.globes.co.il - on September 6, 2024.
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