Cloud computing giant Salesforce (CRM) is buying Own, a start-up company that specializes in tools for backing up data, for $1.90 billion U.S. in cash.
Salesforce said in a news release that the acquisition will improve its ability to back-up its own data in cloud-based applications, and that the deal is expected to conclude by January 2025, pending regulatory approval.
Own was previously valued at $3.35 billion U.S. during a 2021 funding round. Salesforce had previously invested in Own through its venture capital unit, the company said.
The deal marks a return to acquisitions for Salesforce, which had placed a moratorium on all mergers and acquisitions over the past two years.
Salesforce previously spent billions of dollars to acquire start-up companies such as MuleSoft and Slack but had halted its purchases in recent years.
Over the past few weeks, Salesforce announced plans to buy smaller start-up companies PredictSpring and Tenyx.
Analysts said the decline in Own’s value since its last funding round in 2021 reflects a decline in the software sector amid the current high inflation and high-interest rate environment.
Salesforce said the Own acquisition won’t impact its shareholder return initiative, and that the deal will be accretive to free cash flow.
The stock of Salesforce has declined 4% so far this year and currently trades at $246.12 U.S. per share.
