Braze Stock Jumps 52% After Salesforce Agrees to $47.50-a-Share Cash Buyout
Braze shareholders will receive $47.50 in cash for each Class A share under a deal Salesforce announced Tuesday, CNBC reported. That is about 58% above the $30.04 at which Braze closed on Monday, Oct. 19.
In its press release, Salesforce put the deal at roughly $5.66 billion in enterprise value, a figure that counts a company's debt and cash alongside its share price.
Salesforce expects the transaction to close in fiscal 2028, pending shareholder and regulatory approvals, according to CNBC.
How the Stocks Moved on Oct. 20
Braze shares closed Tuesday at $45.57, up 51.70%, the Motley Fool reported. About 64.6 million shares changed hands, far above the stock's three-month average. Trading was briefly halted before the market opened, CNBC said.
Salesforce shares ended the day at $242.44, essentially flat, after slipping about 1% in the morning. Klaviyo, another customer-engagement software company, rose 11.82% to $19.59.
What Braze Shareholders Should Know About the Price Gap
Braze now trades within 4% of the $47.50 offer. The Motley Fool said that, barring a competing bid or an unexpected regulatory obstacle before the deal closes, the stock may not move much from here.
The Motley Fool also noted that Salesforce is paying roughly 7 times Braze's trailing sales for a company that had not yet turned a profit.
Braze went public in 2021 and, even after Tuesday's surge, remains 51% below its debut level, the Motley Fool said. Holders who sell at the current price would receive slightly less than the cash offer, while holders who wait would be exposed to the approval process.
What Braze Does and Why Salesforce Wants It
Braze sells software that lets brands send personalized messages across mobile apps, websites, email, SMS and WhatsApp, reacting to customer behavior as it happens.
Salesforce said the company serves about 2,770 customers, among them Venmo, Instacart, Canva, Dairy Queen, Equinox and Urban Outfitters.
Patrick Stokes, Salesforce's president of applications and marketing, said Braze's real-time capabilities would combine with Salesforce Marketing Cloud, its CRM product and Data 360.
Salesforce said Braze's tools are expected to strengthen the cross-channel personalization in Marketing Cloud.
Bill Magnuson, Braze's CEO and co-founder, said in a statement that Salesforce shares his company's commitment to marketers. He said Braze will keep building under its own name and continue investing in its community of customers and partners.
A Second Large AI-Focused Purchase This Year
The acquisition follows Salesforce's purchase of AI customer service platform Fin for about $3.6 billion, announced in June.
In August, Salesforce and Anthropic announced an expanded partnership that includes a plugin called Claudeforce, which gives salespeople pre-built skills for writing emails and updating records, CNBC said.
Salesforce said it is pursuing acquisitions that meet its M&A framework, which covers customer success, strategic fit, faster innovation and long-term value.