Huge purchase: Salesforce buys the Israeli unicorn Own for $1.9 billion
Posted on Sep 5, 2024 by Ifi Reporter - Dan Bielski
Huge purchase: Salesforce buys the Israeli unicorn Own (formerly OwnBackup), which specializes in backing up cloud systems, for $1.9 billion. This is a cash transaction.
The Israeli company was founded in 2015 by Ariel Berkman, Daniel Gershoni and Eran Cohen.
The company has raised about half a billion dollars to date and was valued in the last fundraising at 3.3 billion dollars at the peak of the bubble in 2021. About two years ago, it announced the layoff of 150 employees - about a tenth of its workforce. Beyond the founders, the biggest beneficiaries of the deal are the Israeli Vertex fund and the American fund's Insight, Blackrock, and Tiger Global.
For Salesforce, which is engaged in the development of corporate information systems and currently trades at a value of 235 billion dollars, this is the largest purchase since Slack in 2021, at 28 billion dollars. Salesforce already knows the Israeli company well and even owned 10% of its shares.
Own's solutions allow managing, saving and backing up information in a secure way, mainly for Salesforce applications and activities.
Despite the big deal, for the investors who entered only in Own's last fundraising round in August 2021, this is a negative return. In the same year, the company completed two large fundraising rounds a few months apart and the value jumped from 1.4 billion dollars to 3.3 billion dollars, and this in just six months. The company's employees had time to meet with the money at a record value, as the latest fundraising included a share sale component by the employees for approximately $25 million or 10% of the fundraising.
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