Salesforce to Acquire Braze for $5.66 Billion in Cash Deal

Salesforce Inc. (NYSE: CRM ) announced Tuesday that it has agreed to acquire Braze Inc. (NASDAQ: BRZE ) for approximately $5.66 billion in enterprise value, expanding its artificial intelligence and customer engagement capabilities. Following the announcement, Braze stock jumped more than 51%. Under the definitive agreement, Braze Class A shareholders will receive $47.50 per share in cash. Salesforce had approximately $8.3 billion in cash and cash equivalents as of June 30. Deal Expands Salesforce’s AI Marketing Capabilities Braze helps businesses deliver personalized messages across mobile apps, websites, email, SMS and WhatsApp. Its technology analyzes customer behavior in real time, allowing marketers to adjust campaigns and customer interactions. The company’s BrazeAI platform uses artificial intelligence to optimize marketing content, offers, communication channels and timing. Salesforce plans to combine these capabilities with Marketing Cloud, Data 360 and Agentforce to improve customer engagement and automate marketing decisions. Braze CEO and co-founder Bill Magnuson said Salesforce’s broader platform would accelerate innovation while allowing Braze to continue developing its products and supporting customers. Patrick Stokes, Salesforce’s president of applications and marketing, said the acquisition would help businesses respond to customer behavior more effectively and deliver personalized experiences at scale. See More: Top Value Stocks Braze Brings Nearly 2,800 Customers Braze serves approximately 2,770 customers, including Canva, Dairy Queen, Equinox, Instacart, Urban Outfitters and Venmo. The acquisition would also strengthen Salesforce’s mobile marketing capabilities and help businesses coordinate customer interactions across sales, commerce, marketing and service. Salesforce expects Braze’s real-time engagement technology to complement its Data 360, Customer 360, Agentforce and SIForce platforms. Deal Expected to Close in Fiscal 2028 The transaction is expected to close during Salesforce’s fiscal 2028, subject to shareholder approval, regulatory clearance and customary closing conditions. Salesforce does not expect the acquisition to affect its fiscal 2027 guidance. The company has not issued fiscal 2028 guidance or updated its long-term financial targets. In September, Salesforce raised its fiscal 2027 revenue forecast to $46.4 billion from its previous range of $46.1 billion to $46.4 billion. The revised outlook exceeded analysts’ estimate of $46.113 billion. Management also said organic revenue growth remains on track to accelerate in the second half of fiscal 2027 and beyond. Price Action: Braze shares were up 51.23% at $45.43 and Salesforce shares were down 2.98% at $235.22 during premarket trading on Tuesday, according to Pro data. Read Also: Salesforce Gets Rare Double Upgrade From Bank of America: ‘AI Should Deepen Dependence,’ Analyst Says Photo via Shutterstock