Salesforce to Acquire Braze for Approximately 5.66 Billion USD

Salesforce will acquire Braze, valuing the transaction at approximately 5.66 billion USD. This acquisition is intended to enhance Salesforce's artificial intelligence business by utilizing Braze's tools that enable brands to send personalized messages and respond in real-time to customer behavior.

Following the announcement, Braze's stock price surged over 50% in local trading on Tuesday. Investors are concerned that the rapid adoption of artificial intelligence technology may diminish the market demand for traditional software. This acquisition represents Salesforce's latest effort to accelerate its transformation into AI.

Braze shareholders will receive 47.50 USD per share in cash, which represents a premium of about 58.1% over the stock's closing price on the previous trading day. Braze serves approximately 2,770 clients, including Canva, Instacart, and Venmo, and its AI tools assist marketers in optimizing content, promotions, and distribution channels.

Shay Boloor, Chief Market Strategist at Futurum Equities, stated that Salesforce is essentially acquiring the real-time interactive layer that has long been missing from marketing operations. The customer relationship management software provider anticipates the transaction will be completed in the fiscal year 2028 and has indicated that this acquisition will not alter its performance expectations for fiscal year 2027.

Salesforce has been ramping up its AI product offerings, having previously acquired the AI platform Fin for 3.6 billion USD earlier this year, and completed a transaction for Informatica valued at 8 billion USD last year.

Based in San Francisco, Salesforce will need to pay a breakup fee of 300 million USD if it decides to terminate the deal, while Braze would owe 191.4 million USD if it opts out of the agreement. J.P. Morgan Securities is acting as the exclusive financial advisor for Salesforce, with Qatalyst Partners providing advisory services for Braze. This story was reported by ITHome.