SAN FRANCISCO - Salesforce (NYSE: NYSE:CRM), a leader in AI customer relationship management, announced its plan to acquire Own Company, a prominent data protection and management solutions provider. The acquisition, valued at approximately $1.9 billion in cash, is expected to enhance Salesforce's data security and compliance capabilities.
Own Company, known for its robust data platform, offers services including data archiving, seeding, security, and analytics, and is currently trusted by nearly 7,000 customers. The integration of Own's technology is aimed at bolstering Salesforce's existing data protection tools, such as Salesforce Backup, Shield, and Data Mask, to offer a more comprehensive suite of products to its customers.
Steve Fisher, President and GM of Einstein 1 Platform and Unified Data Services at Salesforce, emphasized the growing importance of data security and the role of Own's expertise in enhancing Salesforce's end-to-end solutions. Sam Gutmann, CEO of Own, echoed this sentiment, highlighting the shared commitment to data resilience and security between the two companies.
The acquisition is set to close in the fourth quarter of Salesforce's fiscal year 2025, subject to regulatory approvals and customary closing conditions. Salesforce has stated that this transaction is not expected to alter its fiscal year 2025 financial guidance, issued on August 28, 2024, nor will it affect the company's capital return program. On a free cash flow basis, Salesforce anticipates accretion starting in the second year following the transaction's close.
The announcement comes at a crucial time as businesses increasingly prioritize data security to address risks associated with system failures, human error, and cyberattacks. Salesforce's investment in Own's cloud-native data protection solutions aims to meet the growing demand for secure data management, particularly in the context of AI and data-driven decision-making.
While the acquisition holds promise for Salesforce's product offerings and customer data security, it remains subject to the cautionary note of forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from expectations. This proposed transaction is based on a press release statement from Salesforce.
In other recent news, Salesforce has been the subject of numerous financial firm assessments following robust second-quarter results. The company reported earnings per share of $2.56, surpassing both the consensus estimate of $2.36 and the previous year's $2.12 figure. This was accompanied by an 8% increase in sales, slightly exceeding expectations, driven by a 9% rise in subscription and support revenues.
Analysts from CFRA, TD Cowen, BMO Capital Markets, Canaccord Genuity, and Loop Capital have all adjusted their price targets for Salesforce, reflecting confidence in the company's growth trajectory. Notably, CFRA maintained its Strong Buy rating and $300.00 price target, emphasizing the potential of Salesforce's artificial intelligence initiatives, particularly the Agentforce platform, which is expected to become generally available in October.
Furthermore, Salesforce's CFO, Amy Weaver, has announced her plans to step down in early 2025. Despite this, she has committed to remaining on board to assist with the search for her successor.
These are just a few of the recent developments that investors should be aware of. As always, it is recommended to do your due diligence before making any investment decisions.
InvestingPro Insights
In light of Salesforce's (NYSE: CRM) recent announcement to acquire Own Company, a closer look at Salesforce's financial metrics and market performance offers valuable insights. InvestingPro data reveals that Salesforce has a market capitalization of $235.14 billion, underscoring its substantial presence in the industry. The company's focus on profitability and growth is reflected in its impressive gross profit margins, which stand at 76.35% for the last twelve months as of Q2 2025. This indicates a strong ability to control costs and generate revenue efficiently, a key factor in its ability to invest in strategic acquisitions such as Own Company.
Furthermore, Salesforce's management has demonstrated confidence in the company's prospects through aggressive share buybacks, as noted in one of the InvestingPro Tips. This aligns with the company's commitment to shareholder value and may be seen as a positive signal by investors. Additionally, the company's P/E ratio, which currently stands at 42.3, is considered low relative to its near-term earnings growth, suggesting that the stock could be undervalued given its future earnings potential.
Another InvestingPro Tip highlights that Salesforce operates with a moderate level of debt, which provides it with the financial flexibility to pursue growth opportunities such as the acquisition of Own Company without overleveraging its balance sheet. This strategic move is aimed at enhancing Salesforce's suite of products and addressing the growing market demand for secure data management solutions.
For readers interested in further in-depth analysis and additional InvestingPro Tips, Salesforce currently has 13 more tips available, which can be accessed at: https://www.investing.com/pro/CRM. These tips offer a comprehensive view of Salesforce's financial health and market position, providing investors with actionable insights.
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