Tech & AI
Salesforce agrees to buy Braze to expand its AI marketing tools
Salesforce agreed Tuesday to buy marketing software maker Braze for cash, adding AI tools that personalize messages to customers. Salesforce shares were little changed after the news.
Quick Read
- Salesforce agreed to buy Braze, a maker of personalized marketing software, in an all-cash deal.
- Braze shareholders would receive a fixed cash price per share if the deal closes.
- Salesforce shares were little changed, and the company said its fiscal 2027 forecast is unaffected.
- The deal needs shareholder and regulatory approval, and Salesforce expects it to close in its fiscal 2028.
What did Salesforce agree to buy?
Salesforce (NYSE: CRM) said Tuesday it agreed to buy Braze (Nasdaq: BRZE) in an all-cash deal. Braze sells software that helps businesses send personalized messages to their customers. Those messages run through apps, websites, email, texts and WhatsApp.
Why it matters: Under the agreement, holders of Braze Class A shares would receive a fixed cash price for each share. Braze shares rose sharply after the announcement, according to reports. Salesforce shares were little changed, closing at $242.43.
Why does Salesforce want Braze?
Braze's software tracks how customers behave in real time. Marketers can then adjust campaigns as people respond. Its BrazeAI platform uses artificial intelligence to pick content, offers, channels and timing.
Salesforce plans to combine those tools with its Marketing Cloud, Data 360 and Agentforce products. Patrick Stokes, Salesforce's president of applications and marketing, said the deal would help businesses respond to customer behavior and personalize experiences at scale. Braze customers include Canva, Dairy Queen, Instacart and Venmo.
Braze CEO and co-founder Bill Magnuson said Salesforce's larger platform would speed up innovation while Braze keeps building its products.
Where do Salesforce shares stand?
The stock closed 8.9% below its 52-week high of $266.23. About $2 billion of its shares traded during the session. A $1,000 stake bought a year ago would now be worth about $953.
The broader market edged higher during the session, with the benchmark S&P 500 index up 0.3%.
What happens next?
What’s next: Salesforce expects the deal to close during its fiscal 2028. It still requires approval from Braze shareholders and clearance from regulators.
Salesforce said the purchase would not change its fiscal 2027 guidance, meaning the company's own forecast for its results. It has not issued fiscal 2028 guidance. The company raised its fiscal 2027 revenue forecast in September.
For readers
What it could mean for you: People who own Braze shares directly face a fixed cash price per share, which they could receive if the purchase closes during Salesforce's fiscal 2028. Until then, Braze's share price may track the odds that shareholders and regulators approve the deal. For Salesforce shareholders, the company said its fiscal 2027 forecast is unchanged, so near-term results may not reflect the purchase. How well Salesforce folds Braze's tools into its marketing products could shape later forecasts, which it has not yet issued.
Questions and answers
Why is Salesforce buying Braze?
Salesforce said Braze adds real-time tools for personalized messages across apps, websites, email and texts. It plans to combine them with its Marketing Cloud, Data 360 and Agentforce products.
Will Braze shareholders get cash or stock?
Braze Class A shareholders would receive cash for each share under the agreement. The payment depends on the deal closing.
When will the Salesforce Braze deal close?
Salesforce expects it to close during its fiscal 2028. It still requires Braze shareholder approval and regulatory clearance.
Does the deal change Salesforce's forecast?
Salesforce said the purchase would not affect its fiscal 2027 guidance. It has not issued guidance for fiscal 2028.
The numbers
| Salesforce (CRM) price | $242.43 |
|---|---|
| Salesforce (CRM) change | −0.01% |
| Salesforce (CRM) 52-week high | $266.23 |
| S&P 500 change | +0.28% |
| 10-year Treasury yield | 5.12% |
Tuesday’s close
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