Stock Market Today, Oct. 20: Salesforce Agrees to Acquire Braze for $5.66 Billion: BRZE Stock Soars 52%

On October 20, Salesforce announced its acquisition of Braze, a customer engagement and personalized marketing software provider, for $47.50 per share or $5.66 billion in total cash. Braze's stock soared by 52% following the news. Trading volume for Braze reached 64.6 million shares, more than 1,799% above its three-month average of 3.4 million shares.

Since going public in 2021, Braze's stock has fallen 51%. The S&P 500 closed at 7,711, up 0.26%, while the Nasdaq Composite finished at 26,425, down 0.02%. Among software application platform peers, Klaviyo closed at $19.59, up 11.82%, while Salesforce itself remained essentially flat at $242.44 after the announcement. This acquisition follows Salesforce's previous acquisition of AI customer service startup Fin for $3.6 billion in June.

With this latest deal, Salesforce is positioning itself to put AI at the core of its offerings. At roughly 7 times Braze's trailing sales, the deal may take several quarters to years to determine if it pays off. As of now, Braze shares trade within 4% of Salesforce's offering price, suggesting limited movement unless a competing bid emerges or unforeseen regulatory hurdles arise before the deal closes in 2027.