Salesforce to buy Braze for $5.66 billion in cash

Salesforce (NYSE: CRM) has agreed to acquire customer engagement software maker Braze in an all-cash transaction valued at $5.66 billion. The definitive agreement, announced on Tuesday, Oct. 20, provides Braze Class A shareholders with $47.50 per share, a 58% premium over the $30.04 closing price recorded on Oct. 19. Following the announcement, Braze stock surged 56.3% from its Oct. 16 close to the Oct. 22 close, reaching $45.86. During the same period, the S&P 500 remained flat while the Nasdaq-100 declined 0.8%.

The deal structure involves Salesforce absorbing the entire business, with Braze CEO Bill Magnuson and the core leadership team transitioning to Salesforce upon closing. Braze provides cloud-based software that enables consumer brands to automate personalized messaging across mobile apps, email, and text. Its client base includes Canva, Instacart, Urban Outfitters, and Venmo. In the quarter ended July 31, 2026, the company reported revenue of $227.2 million, a 26.2% increase year over year.

Salesforce anticipates finalizing the purchase within its fiscal year 2028, a period running from February 2027 to January 2028. Closing the deal depends on standard requirements, such as regulatory approvals and a shareholder vote at Braze. The merger agreement includes financial protections: Salesforce must pay a $300 million fee if regulatory approvals fail, and a $191 million breakup fee applies if Braze accepts a superior proposal.

With the stock trading at $45.86 as of Oct. 23, the share price sits slightly below the $47.50 offer price, reflecting transaction timing and regulatory conditions. The shift from operational growth to merger arbitrage limits potential upside for investors holding through the closing date. If the deal proceeds as planned, shareholders will receive the fixed cash payout in roughly calendar year 2027. Conversely, if regulatory bodies or shareholder votes block the transaction, the stock faces downside risk toward its pre-announcement level near $30.