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Salesforce's Braze Deal: $5.66 Billion, All Cash, and a $300 Million Breakup Fee

The CRM giant is buying the customer-engagement platform for about $5.66 billion in enterprise value. The deal needs Braze shareholder and regulatory approval and isn't expected to close until Salesforce's fiscal 2028.

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For information only, not investment advice. Prices delayed.

Tickers: CRM, BRZE

Salesforce ($CRM) has agreed to buy Braze ($BRZE), a customer-engagement platform, for about $5.66 billion in enterprise value, the company said on Tuesday. Holders of Braze's Class A shares will get $47.50 each in cash, terms CNBC also reported. Reuters put that at a premium of about 58.1% to Braze's last close, and framed the deal as Salesforce's latest bet on AI at a time when investors worry the technology could erode demand for traditional software.

Braze, which helps brands send personalized messages across apps and email, serves about 2,770 customers, including Canva and Venmo, according to Salesforce. Salesforce says Braze's real-time engagement and AI tools are expected to complement its Data 360, Customer 360, Agentforce and SIForce products. That's the pitch, not a result. Salesforce's own investor slides describe "growth accretion balanced by near term profitability dilution," which means more growth but thinner profits in the near term. Salesforce expects to pay in cash and sees no change to its fiscal 2027 guidance.

The number worth noticing is in Braze's merger filing. If the deal falls apart in certain cases, such as a regulatory block or running out of time, Salesforce owes Braze a $300 million termination fee. Braze would owe $191.39 million in certain cases, including if it walks away for a better offer. Braze's board approved the deal unanimously. Either side can walk if it hasn't closed within a year, with up to two 90-day extensions for regulators.

Salesforce shares were down 0.01% at $242.43 as of Oct 20, 4:00 PM ET.

Sources

  1. Salesforce Signs Definitive Agreement to Acquire Braze (Form 8-K, Exhibit 99.1), Salesforce, Inc. (SEC filing)
  2. Salesforce investor webinar on Braze acquisition (Form 8-K, Exhibit 99.2), Salesforce, Inc. (SEC filing)
  3. Braze, Inc. Form 8-K: merger agreement with Salesforce, Braze, Inc. (SEC filing)
  4. Salesforce deepens AI bets with $5.66 billion Braze deal, Reuters (via Investing.com)
  5. Salesforce announces $5.66 billion deal for Braze, CNBC

Tags: mergers-acquisitions · ai