Salesforce deepens AI bets with $5.66 billion Braze deal

Salesforce has announced the acquisition of Braze, a New York-based company specializing in AI-driven personalization tools, for approximately $5.66 billion. The deal aims to bolster Salesforce's business software portfolio by integrating Braze's advanced technology. As investors grow apprehensive about the potential impact of AI's rapid adoption on traditional software demand, Salesforce's strategic move underscores its commitment to AI-powered solutions.

In the Braze transaction, shareholders will receive $47.50 per share, reflecting a 58.1% premium over the company's previous stock close. Shares of Braze surged by over 50% during the initial trading session, while Salesforce's stock experienced a slight decline. Braze's AI-driven capabilities enable marketers to optimize content, offers, channels, and timing, allowing brands to send personalized messages to customers and react to their behavior in real-time.

The company currently serves over 2,770 clients, including industry leaders like Canva, Dairy Queen, Equinox, Instacart, Urban Outfitters, and Venmo. The acquisition is anticipated to conclude within Salesforce's fiscal year 2028, contingent on necessary approvals. Notably, the merger is not expected to alter Salesforce's fiscal 2027 projections.

Prior to this deal, Salesforce bolstered its AI offerings by investing $3.6 billion in Fin, an AI agent platform, and $8 billion in Informatica last year. Salesforce will shoulder a $300 million termination fee, whereas Braze will incur a $191.4 million charge if the agreement is abandoned. J.P. Morgan Securities is the sole financial adviser to Salesforce, while Qatalyst Partners is advising Braze.