New to this? Read it in simple words
- Salesforce wants to buy Braze, which sends brands’ messages to their customers.
- It will pay $47.50 a share in cash, about $5.66 billion in total.
- Salesforce says Braze will help its AI agents. That is its own claim.
- Shareholders and regulators must still agree. The deal should close by January 2028.
- Enterprise value
- What a company is worth to a buyer, counting its debt and its cash.
- Premium
- How much more a buyer pays than the share price before the deal.
- Fiscal year
- A company’s own 12-month accounting year, which may not start in January.
Braze is a New York company whose software sends marketing messages to a brand’s customers in apps, on the web, by email, by text and on WhatsApp. Salesforce sells software for sales, service and marketing teams. The two announced the deal on Tuesday, October 20.
The terms
Holders of Braze’s Class A shares will receive $47.50 in cash per share, the companies said. They put the deal at about $5.66 billion in enterprise value, a measure that includes debt and cash.
The price is about 58% above Braze’s closing price of $30.04 on Monday, Reuters and Barron’s report. Braze’s shares rose about 50% on Tuesday, while Salesforce’s fell about 1%.
The deal needs a vote by Braze’s shareholders and approval from competition regulators. It is expected to close in Salesforce’s fiscal year 2028, which runs from February 2027 to January 2028. If it fails, Salesforce may have to pay Braze $300 million, Braze’s filing says.
From the companies’ filings. The premium is the outlets’ calculation.
Salesforce’s AI pitch
Salesforce says Braze will “complement all four layers” of its system, including Agentforce, its platform for AI agents. In its words, Braze’s real-time messages and AI decisions will make contact with customers “more relevant”.
These are the companies’ claims. Braze already sells its own AI tools, such as BrazeAI Operator and Decisioning Studio.
Braze reported revenue of $227.2 million in the quarter to July 31, up 26.2% from a year earlier, and still made an operating loss. The companies say it serves about 2,770 customers.
What analysts say
Analysts at BMO told Investor’s Business Daily that Salesforce’s marketing and commerce revenue has fallen for three quarters. An analyst at William Blair said Braze had been winning customers from Salesforce.
An analyst at Evercore ISI told Barron’s that the premium looks high unless other buyers were bidding too. Shares of Klaviyo, a smaller rival, rose about 9% on the news, Barron’s reports.
It is another large purchase for Salesforce. Reuters and CNBC recall that it bought the data company Informatica for about $8 billion in 2025.
Sources
Every fact in this story comes from the sources below. Open them to check our work.
- 1Primary source · October 20, 2026Salesforce Signs Definitive Agreement to Acquire Braze (joint press release) Salesforce and Braze (SEC filing)
- 2
- 3Primary source · September 8, 2026Braze Reports Strong Fiscal Second Quarter 2027 Results Braze (SEC filing)
- 4Research · October 20, 2026Salesforce deepens AI bets with $5.66 billion Braze deal Reuters (via MSN)
- 5Research · October 20, 2026Salesforce acquires Braze for $5.7 billion in latest AI bet. The price seems a bit odd. Barron’s
- 6Research · October 20, 2026Salesforce to buy Braze in $5.7 billion, all-cash deal as acquisitions continue Investor’s Business Daily
- 7Research · October 20, 2026Salesforce announces $5.66 billion deal for Braze, sending BRZE stock soaring 50% CNBC
The price, terms and timing come from the companies’ filings. The premium is the outlets’ calculation, and how Braze fits Salesforce’s AI agents is the companies’ claim.
Salesforce agrees a $5.66 billion cash deal to buy Braze for its AI agents, though analysts call the premium high. How we rate the mood