Salesforce agreed to buy customer engagement platform Braze for about $5.66 billion in cash. Braze shares jumped more than 50% on the news, while Salesforce shares slipped.
Braze stock skyrocketed more than 50% on Tuesday after Salesforce announced it would acquire the company. Salesforce shares slipped roughly 1% on Tuesday morning following the announcement.
Braze holders get $47.50 a share in cash
Under the deal, holders of Braze Class A common stock will get $47.50 in cash per share. Braze shares had closed at $30.04 on Monday, and trading in the stock halted briefly premarket after the news.
The transaction is expected to close in fiscal 2028, subject to shareholder and regulatory approvals, according to a Salesforce blog post. The Motley Fool notes that Salesforce's fiscal 2028 begins in February.
Braze trades below the offer price
Braze was trading around $45.35 on Tuesday morning, below the $47.50 offer. The Motley Fool reads that gap as mild skepticism that the deal would go through as negotiated.
Salesforce, for its part, dipped as much as 3% as investors assessed the deal, before trading down 0.6% as of 10:10 a.m. ET.
What Salesforce gets
Braze makes artificial intelligence marketing tools to manage customer data and messaging. The companies expect its platform to complement Salesforce's core offerings, and Braze will bring 2,770 customers with it, including Canva, Dairy Queen, Equinox and Instacart.
The deal follows Salesforce's announcement months ago that it would buy AI customer service platform Fin for about $3.6 billion. Braze CEO Bill Magnuson said in a statement that Salesforce's platform will help Braze innovate faster.
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