Salesforce Agrees to Acquire Braze for About $5.66 Billion in Cash
The $47.50-per-share offer is a 58% premium to Braze's Monday close and is expected to close in Salesforce's fiscal 2028.
Photo: Frank Schulenburg / CC BY-SA 4.0 via Wikimedia Commons
Salesforce said on Tuesday it has agreed to acquire customer-engagement software maker Braze for about $5.66 billion in cash, paying $47.50 for each Class A share.
Deal terms
- Price: $47.50 per Braze Class A share in cash, roughly $5.66 billion in total
- Premium: about 58% over Braze's Monday closing price of $30.04
- Timing: expected to close during Salesforce's fiscal 2028, subject to Braze shareholder and regulatory approval
- Outlook: Salesforce said the purchase would not affect its fiscal 2027 guidance
Braze shares rose more than 50% on the news, while Salesforce shares fell about 1% in early trading, according to TechStartups.
About Braze
Braze was founded in 2011 as Appboy, is based in New York and listed on Nasdaq in 2021. Its software lets companies message customers across mobile apps, email, websites and SMS, using customer activity processed in real time. Customers named include Canva, Venmo and Urban Outfitters.
Braze CEO Bill Magnuson said Salesforce "shares our commitment to marketers," and that its platform will help Braze innovate faster.
Context
The agreement is the latest in a series of acquisitions by Salesforce. The company recently agreed to buy Fin, an AI customer-service platform, for $3.6 billion, and previously agreed to buy data-management company Informatica for roughly $8 billion. In August it expanded its partnership with Anthropic.
TechStartups noted that investors have previously questioned the costs of Salesforce's large acquisitions, including Slack and Tableau. Details of how Salesforce will fund the Braze purchase were not specified beyond the cash consideration.
