Salesforce has reached a definitive agreement to acquire customer-engagement software provider Braze in an all-cash transaction valued at roughly $5.7 billion, a move that extends the enterprise software giant's push into artificial intelligence-driven marketing tools.
Under the terms announced Tuesday, Salesforce will pay $47.50 for each Braze share. That represents a 58% premium to Braze's closing price of $30.04 on Monday. The deal is expected to close in Salesforce's fiscal 2028, pending shareholder and regulatory clearances.
The market response was split. Braze shares jumped more than 50% in early trading, climbing toward the offer price, while Salesforce stock declined as investors weighed the cost of the acquisition.
What Braze brings to Salesforce
Braze runs a platform that helps companies personalize customer interactions across websites, mobile apps, email and text messaging. Its AI-powered tools let marketers tailor content, offers, channels and send times in response to real-time customer behavior.
The company counts roughly 2,770 customers, a roster that includes Canva, Dairy Queen, Equinox, Instacart, Urban Outfitters and Venmo. Salesforce said the purchase would help clients act on customer signals faster, deliver consistent cross-channel experiences and bolster its marketing software lineup.
The acquisition fits Salesforce's broader effort to expand AI-powered products as investors debate whether the technology could disrupt demand for conventional enterprise software.
Valuation draws analyst scrutiny
Braze's price tag is a central issue. Analysts polled by FactSet expect the company to earn 64 cents per share this year, placing the acquisition at roughly 74 times projected earnings. The offer also equals just over six times Braze's estimated annual revenue.
Evercore ISI analysts said the deal makes strategic sense but flagged that its timing and price could draw questions. They noted the offer is about an 80% premium to Braze's 30-day moving average and suggested the unusually rich premium might point to competing interest for the asset.
Salesforce has leaned heavily on acquisitions to build out its AI and data capabilities. In May 2025, it agreed to buy data-management company Informatica for about $8 billion. In June 2026, it announced a $3.6 billion deal for AI customer-service platform Fin. Those purchases are meant to reinforce the data infrastructure and AI tools underpinning Salesforce's software ecosystem.
Guidance and deal terms
Salesforce said it does not expect the Braze acquisition to alter its fiscal 2027 financial guidance. In its fiscal second-quarter report, the company projected fiscal 2027 revenue growth of 11% to 12%, with Informatica contributing slightly more than three percentage points. Salesforce also raised its full-year revenue forecast by $200 million, partly reflecting expected contributions from pending deals, including content-management software company Contentful and Fin.
The agreement includes termination provisions. Salesforce would owe a $300 million break fee if it walks away under the applicable terms, while Braze would pay $191.4 million if it terminates under specified conditions.
The transaction still requires approvals. How much it ultimately adds to Salesforce's growth will hinge on how well Braze's technology is integrated and whether it strengthens the company's marketing and AI offerings.
This article is for informational purposes only and does not constitute financial advice.
