Salesforce CRM has agreed to acquire marketing software company Braze for approximately $5.7 billion in cash, expanding its artificial intelligence capabilities as the software company looks to strengthen its position in an increasingly competitive market.
Under the agreement announced on Tuesday, Salesforce will pay $47.50 per Braze share, representing a premium of about 58% to Braze’s Monday closing price of $30.04.
The transaction is expected to close in Salesforce’s fiscal 2028, subject to shareholder and regulatory approvals.
The market reaction was mixed. Braze shares surged more than 50% in early trading, approaching the offer price, while Salesforce shares fell.
Salesforce said it does not expect the acquisition to change its fiscal 2027 financial guidance.
Braze acquisition expands Salesforce’s AI marketing tools
Braze operates a customer-engagement platform that helps businesses personalise interactions across websites, mobile applications, email and text messages.
Its AI-powered tools allow marketers to optimise content, offers, communication channels and timing while responding to customer behaviour in real time.
The company serves approximately 2,770 customers, including Canva, Dairy Queen, Equinox, Instacart, Urban Outfitters and Venmo.
Salesforce said the acquisition would help businesses act on customer behaviour more quickly, deliver personalised experiences across different channels and strengthen its marketing software offerings.
The deal is another step in Salesforce’s effort to expand its AI-powered products as investors assess whether the technology could disrupt demand for traditional enterprise software.
Braze’s valuation is a key consideration.
Analysts surveyed by FactSet expect the company to earn 64 cents per share this year, putting the acquisition price at approximately 74 times projected earnings.
The purchase price also represents just over six times Braze’s projected annual sales.
Analysts question acquisition price and timing
Although the acquisition adds to Salesforce’s AI capabilities, analysts have raised questions about the premium it is paying and its broader acquisition strategy.
Evercore ISI analysts said the deal makes strategic sense but noted that its timing and price could attract scrutiny.
They highlighted that the offer represents an approximately 80% premium to Braze’s 30-day moving average.
The analysts also suggested that the unusually high premium could indicate competition for the asset.
Salesforce has increasingly relied on acquisitions to expand its AI and data capabilities.
In May 2025, it agreed to acquire data-management company Informatica for approximately $8 billion.
In June 2026, it announced a $3.6 billion acquisition of AI customer-service platform Fin.
The acquisitions are intended to strengthen the data infrastructure and AI tools supporting Salesforce’s software ecosystem.
Salesforce maintains fiscal 2027 guidance
Salesforce’s recent acquisitions have contributed to its revenue outlook.
In its fiscal second-quarter report, the company forecast fiscal 2027 revenue growth of 11% to 12%, with the Informatica acquisition accounting for slightly more than three percentage points.
Salesforce also raised its full-year revenue forecast by $200 million, partly reflecting expected contributions from pending acquisitions, including content-management software company Contentful and Fin.
Under the Braze agreement, Salesforce would pay a $300 million termination fee if it abandons the transaction under the applicable terms.
Braze would pay $191.4 million if it terminates the agreement under the specified conditions.
The acquisition is subject to the required approvals. Its eventual contribution to Salesforce’s growth will depend on the integration of Braze’s technology and its ability to strengthen the company’s marketing and AI offerings.
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