Braze stock surges over 50% after Salesforce announces $5.66 billion acquisition
A Ksheerasagar
Shares of Braze surged in Tuesday’s trade on October 20, rallying 52% to a 22-month high of $45.59 apiece on the Nasdaq after Salesforce (CRM) agreed to acquire the customer-engagement software company, handing existing investors a major windfall.
For Braze, the strategic attraction extends beyond the purchase price. Joining Salesforce Inc. could give the technology much broader distribution and greater resources for product development.
Following the meteoric rally, Braze stock is trading at roughly three times its late-February price.
Salesforce said on Tuesday that it would acquire Braze in a deal valued at about $5.66 billion, valuing Braze shares at $47.50 apiece and representing a 58.1% premium over the stock’s previous closing price. The company expects the all-cash transaction to close in fiscal 2028, subject to the necessary approvals.
New York-based Braze gathers customer data in real time and uses artificial intelligence (AI) to generate personalized messages across different channels and communication platforms, including mobile apps, websites, email, and text messaging.
The company serves around 2,770 customers, including Canva, Equinox, Instacart, and Venmo, according to the statement.
The deal marks Salesforce’s latest move to accelerate its AI transition as investors worry that the rapid adoption of the technology could erode demand for traditional software. Salesforce will use Braze’s technology to bolster several of its products, particularly those focused on marketing and customer communication through Agentforce, its flagship AI platform.
The deal also reinforces Salesforce’s return to a strategy of serial software acquisitions.
Since the start of last year, the San Francisco-based company has also acquired Fin for $3.6 billion, Contentful for $1.5 billion and Informatica for $8 billion. Salesforce had taken a break from major acquisitions after activist investors pushed back against the strategy around the beginning of 2023, Bloomberg reported.
Salesforce’s marketing unit has been struggling, posting several recent quarters of largely flat or declining growth.
Customers are beginning to use a major new update to the offering that includes agentic AI features and will be strengthened by the Braze acquisition, Salesforce executives said during a call on Tuesday.
(With agency inputs)
A Ksheerasagar
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
Get Latest real-time updates
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
HomeMarketsStock MarketsBraze stock surges over 50% after Salesforce announces $5.66 billion acquisition
✕
Wait for it…
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.