Salesforce deepens AI bets with $5.66 billion Braze deal

A logo of Salesforce is seen at its exhibition space, at the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition center in Paris, France June 16, 2022. REUTERS/Benoit Tessier

Oct 20 : Salesforce said on Tuesday it would acquire Braze in a deal valued at about $5.66 billion, eyeing the New York-based company's AI-driven personalization tools to strengthen its business software offerings.

The deal is the latest bet by Salesforce to accelerate its AI transition as investors worry that the rapid adoption of the technology could erode demand for traditional software.

Braze Class A shareholders will receive $47.50 in cash per share held, representing a premium of about 58.1 per cent to the stock's last close.

Shares of Braze jumped more than 50 per cent in early trading while Salesforce's stock dipped.

Braze's AI tools help marketers optimize content, offers, channels and timing, and let brands send personalized messages to customers and respond to their behavior in real time.

The company serves about 2,770 customers including Canva, Dairy Queen, Equinox, Instacart, Urban Outfitters and Venmo.

The transaction is expected to close in Salesforce's fiscal year 2028, subject to required approvals. The company does not expect the deal to change its fiscal 2027 forecast.

Salesforce has been doubling down on its AI offering and signed a $3.6 billion deal for AI agent platform Fin earlier this year and an $8 billion deal for Informatica last year.

Salesforce would pay a $300 million termination fee, while Braze would pay $191.4 million if it abandons the deal.

J.P. Morgan Securities is the exclusive financial adviser to Salesforce, while Qatalyst Partners is advising Braze.

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