Salesforce snaps up Braze

Salesforce is buying Braze ⁠in ⁠a deal valued at about $5.66 billion ($8 billion), bolstering its AI push with tools that let brands send personalised messages and respond to ‌customer behaviour in real time.

Shares of ‌Braze ‌jumped more than 50 percent after the deal ⁠was announced.

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

Braze serves about 2770 customers, including Canva, Instacart and Venmo, with AI tools that help marketers optimise content, offers and channels.

Salesforce is essentially buying "a real-time engagement layer that its marketing business has ​historically lacked," said Shay Boloor, ⁠chief market strategist at Futurum ⁠Equities.

The company, which provides customer relationship management software, expects the transaction ​to close in its fiscal 2028 and ‌does not ⁠see deal changing its fiscal 2027 forecast.

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

The San Francisco-based company would pay ​a US$300 million termination fee, while Braze would pay US$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.