Salesforce deepens AI bets with $5.66 billion Braze deal
A logo of Salesforce is seen at its exhibition space, at the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition center in Paris, France June 16, 2022. REUTERS/Benoit Tessier
Oct 20 : Salesforce is buying Braze in a deal valued at about $5.66 billion, bolstering its AI push with tools that let brands send personalized messages and respond to customer behavior in real time.
Shares of Braze jumped more than 50 per cent on Tuesday after the deal was announced.
The deal is the latest bet by Salesforce to accelerate its AI transition as investors worry that the rapid adoption of the technology could erode demand for traditional software.
Braze shareholders will receive $47.50 in cash per share held, representing a premium of about 58.1 per cent to the stock's last close.
Braze serves about 2,770 customers, including Canva, Instacart and Venmo, with AI tools that help marketers optimize content, offers and channels.
Salesforce is essentially buying "a real-time engagement layer that its marketing business has historically lacked," said Shay Boloor, chief market strategist at Futurum Equities.
The company, which provides customer relationship management software, expects the transaction to close in its fiscal 2028 and does not see deal changing its fiscal 2027 forecast.
Salesforce has been doubling down on its AI offering and signed a $3.6 billion deal for AI agent platform Fin earlier this year and an $8 billion deal for Informatica last year.
The San Francisco-based company would pay a $300 million termination fee, while Braze would pay $191.4 million if it abandons the deal.
J.P. Morgan Securities is the exclusive financial adviser to Salesforce, while Qatalyst Partners is advising Braze.
