Klaviyo Shares Rise 8% After Salesforce Agrees to Buy Braze for $5.66 Billion
Key Facts
Klaviyo shares rose 8% during trading on Tuesday, October 20, 2026, after Salesforce announced a definitive agreement to acquire Braze, according to Investing.com. Salesforce said in a statement that the deal values Braze at an enterprise value of about $5.66 billion, with completion remaining subject to the necessary approvals. The company is targeting Braze's AI-powered customer experience personalization tools to bolster its software offerings, according to Reuters. Braze focuses on enterprise digital products and mobile applications, according to Investing.com, an area in which Klaviyo is also expanding its customer services. Klaviyo's gains came during the session alongside the announcement of its rival's acquisition, and the increase was not a closing share-price move.
Under the terms announced by Salesforce, holders of Braze Class A shares will receive $47.50 per share in cash. The consideration represents a premium of about 58.1% to Braze's last closing share price before the announcement, according to Reuters. Shares of the target jumped more than 50% in early trading on the day of the announcement, while Salesforce shares fell. Braze served about 2,770 customers at the time the acquisition was announced, according to Salesforce's statement outlining the target's customer base. Those customers included Canva, Instacart and Venmo, among companies using Braze's services to engage with their customers.
The deal follows Braze's announcement of quarterly revenue of $227.2 million for its fiscal second quarter of 2027, ended July 31, 2026. Revenue in the corresponding period of the previous fiscal year was $180.1 million, according to the company's earnings statement. Braze attributed revenue growth primarily to new customers, increased sales to existing customers and subscription renewals. The company said it generated $24 million in cash flow from operating activities during the same quarter. Free cash flow was $22 million, according to its reported results for the period preceding the acquisition agreement.
Klaviyo reported revenue of $370.6 million for the second quarter ended June 30, 2026, according to its quarterly earnings statement. The company said revenue represented year-on-year growth of 26% compared with the corresponding period, alongside an expansion in its customer base. It had more than 205,000 customers at the end of the quarter, according to the statement, while its net revenue retention rate was 109%. Klaviyo raised its revenue forecast for fiscal 2026 to a range starting at $1.526 billion. It set the upper end at $1.534 billion in its annual guidance update accompanying the second-quarter results.
The move in Klaviyo shares comes as the company expands from marketing into customer service through a customer relationship management platform combining marketing, service and analytics. Andrew Bialecki, the company's co-founder, said in the platform announcement: "We are expanding into a complete customer relationship management system that connects the entire customer experience." Klaviyo also strengthened its integration with Shopify to serve growing brands globally, according to a separate company announcement. It said expanding the connection between the platforms helps businesses unify customer data across the regions in which they operate. It added that the integration enables consistent, localized customer experiences worldwide as it expands its customer relationship management services.
As for the next steps, completion of Salesforce's acquisition of Braze requires approval from the target's shareholders, according to the definitive agreement announcement. The agreement also requires the necessary regulatory approvals to complete the acquisition announced by Salesforce. The company expects to close the deal during its fiscal 2028, according to the timeline in its announcement. Klaviyo's next financial event is its third-quarter 2026 results presentation, listed on its investor relations page. The company scheduled the presentation for November 4, 2026, following second-quarter results that prompted it to raise its annual revenue forecast.