Salesforce agrees to buy Braze at enterprise value of about $5.66 billion
Key Facts
Salesforce announced a definitive agreement on October 20, 2026 to acquire customer engagement platform Braze at an enterprise value of about $5.66 billion, in a move aimed at strengthening AI-driven marketing personalization across channels. According to Braze's filing with the U.S. Securities and Exchange Commission, the merger agreement was signed on October 19, 2026 between the company, Salesforce and its acquisition subsidiary. The agreement provides for holders of Braze Class A common shares covered by the merger to receive $47.50 in cash per share at completion. Braze's board unanimously approved the agreement, according to the SEC filing. Under the agreement, the customer engagement platform will become a wholly owned subsidiary of Salesforce upon completion of the merger.
Braze served about 2,770 customers at the time the deal was announced, according to Salesforce's statement, including companies across various industries. Those customers include Canva, Dairy Queen, Equinox, Instacart, Urban Outfitters and Venmo. Braze's AI system uses technology to optimize the selection of content and offers presented to customers, according to the statement. These capabilities extend to choosing communication channels and the timing of messages, tools Salesforce intends to use for marketing personalization across channels. On financial performance, the quarterly results Braze released before the deal showed revenue of $227.2 million. The company compared that figure with revenue of $180.1 million in the corresponding quarter a year earlier, according to its financial results filed with the SEC. That represented year-on-year revenue growth of 26.2% in the quarter reported before the acquisition agreement.
In the market, Braze shares jumped more than 50% on Tuesday following the deal announcement, according to Reuters. The news agency said the acquisition offer represented a premium of about 58.1% to the stock's last closing price before the announcement. Following the agreement, Mizuho downgraded Braze shares to "Neutral" from "Outperform," according to Investing.com. At the same time, the firm raised its price target to $47.50 from $32.00 before the revision. Mizuho's new price target thus matched the cash consideration specified for Braze shares covered by the merger agreement.
The merger agreement includes potential financial obligations for both parties under specified termination circumstances, according to Braze's filing with the U.S. Securities and Exchange Commission. Salesforce may be required to pay Braze a cash termination fee of $300,000,000. That obligation applies in certain circumstances where the deal cannot be completed or is blocked by regulators, subject to the other contractual conditions specified. Braze, in turn, may be required to pay Salesforce a cash termination fee of $191,390,000 under the agreement's terms. The specified circumstances triggering this fee include acceptance of a superior offer or a change in Braze's board recommendation regarding the merger. They also include failure to obtain shareholder approval, with payment of the fee subject to the conditions set out in the agreement.
On management after the acquisition, Bill Magnuson said he would continue to lead Braze as chief executive after the deal is completed. He added in deal communications filed with the U.S. Securities and Exchange Commission: "I will continue to lead Braze as CEO after the deal closes." Completion requires approval from holders of a majority of Braze's outstanding Class A common shares, according to the merger agreement. The agreement also requires satisfaction of the specified competition and foreign investment requirements, alongside customary closing conditions. Salesforce expects to complete the acquisition during its fiscal year 2028, according to the statement announcing the agreement, subject to shareholder and regulatory approvals and satisfaction of those conditions.