Salesforce to Buy Braze for $5.66B, Betting Big on Real-Time AI Marketing

Key Points

• Salesforce plans to acquire Braze for approximately $5.66 billion, offering Braze shareholders $47.50 in cash per share. The deal is expected to close in Salesforce’s fiscal 2028, pending shareholder and regulatory approvals.
• The acquisition would strengthen Salesforce’s real-time, AI-driven marketing capabilities across mobile, web, email, SMS, WhatsApp and other channels. Braze serves about 2,700 customers and would complement Salesforce’s Data 360, Customer 360, Agentforce and Slack platforms.
• Salesforce expects the deal to be growth-accretive but cause near-term profitability dilution, while funding it entirely with cash. The company left its fiscal 2027 and fiscal 2030 outlooks unchanged.

Salesforce said it intends to acquire Braze NASDAQ: BRZE, a customer engagement platform focused on real-time and mobile communications, in a transaction valued at approximately $5.66 billion in enterprise value. The companies expect the deal to close during Salesforce’s fiscal 2028, subject to Braze shareholder approval, regulatory review and other customary closing conditions.

Under the agreement, holders of Braze Class A common stock would receive $47.50 in cash per share. Salesforce President and Chief Operating and Financial Officer Robin Washington said the purchase price represents about five times Braze’s expected fiscal 2028 revenue and approximately 2.5% of Salesforce’s enterprise value.

Salesforce expects to fund the acquisition with cash and said it does not currently expect to require debt financing. Washington said the purchase amount is equivalent to roughly four months of Salesforce’s anticipated fiscal 2027 annual free cash flow.

Focus on Real-Time, Agentic Marketing

Salesforce President of Applications and Marketing Patrick Stokes said the proposed acquisition is intended to expand Salesforce’s marketing capabilities as brands seek more immediate, personalized interactions with customers across mobile apps, the web, email, SMS, WhatsApp and other channels.

Stokes said marketers increasingly need technology that can understand customer activity, make decisions and act in real time. He described Braze as a platform designed to help marketers quickly deliver customer communications and coordinated journeys at consumer scale, particularly in mobile environments.

“The best ideas have a shelf life,” Stokes said, arguing that marketers need the ability to act while a customer moment is still occurring.

According to Salesforce, Braze serves approximately 2,700 customers, including Canva, Dairy Queen, Equinox, Instacart, Urban Outfitters and Venmo. Stokes said Braze’s event-streaming architecture uses live customer behavior to power personalized messaging and customer journeys, with trillions of messages and journey actions processed annually.

Salesforce expects Braze’s real-time engagement, mobile and AI optimization capabilities to complement its Data 360, Customer 360, Agentforce and Slack offerings. Stokes said combining Braze with Salesforce’s data tools, trust layer, global distribution and partner ecosystem could provide marketers with more context and intelligence at greater scale.

Braze to Continue Operating as Braze

Braze Co-Founder and Chief Executive Officer Bill Magnuson said the company was built around the idea that marketers’ creativity is a competitive advantage for brands. He said Braze has spent 15 years developing a real-time, cloud-native platform designed to turn marketing ideas into customer relationships.

Magnuson said Salesforce is the appropriate home for Braze’s next phase of growth. Following the close, he expects Braze’s real-time engagement and AI decisioning capabilities to complement Salesforce’s architecture, including Data 360, Customer 360, Agentforce and Slack.

“Braze will continue building as Braze, and I’ll continue as CEO of Braze within Salesforce,” Magnuson said.

He also said the two companies would remain separate and independently operated until the deal closes, with each continuing to serve its own customers. Salesforce said the transaction remains subject to customary closing conditions, including approval by Braze shareholders and required regulatory approvals.

Financial Outlook Unchanged for Fiscal 2027

Washington said the transaction satisfies Salesforce’s acquisition framework across customer success and strategic fit, acceleration and value. She said Braze would add mobile and data-engineering talent, while Salesforce’s global go-to-market organization could expand Braze’s reach internationally.

Both Braze founders and the company’s broader leadership team are expected to join Salesforce after the close, according to Washington.

Salesforce expects the transaction to provide growth accretion while creating near-term profitability dilution. Washington said the company anticipates operating efficiencies following the close and plans to report Braze’s revenue contribution for one year after the transaction is completed.

Because the acquisition is not expected to close for some time, Salesforce said it is making no change to its fiscal 2027 guidance. The company also said its fiscal 2030 framework remains unchanged. Salesforce said it is in its third-quarter quiet period and would not provide further commentary until its upcoming third-quarter earnings call.

About Braze (NASDAQ:BRZE)

Braze, Inc is a customer engagement software company that provides a platform for businesses to build, manage and measure personalized interactions with consumers. Its technology is designed to help brands communicate with customers across digital channels, including mobile applications, websites, email, SMS and messaging services.

The Braze platform supports customer data collection and segmentation, campaign creation, journey orchestration, experimentation and engagement analytics. Its capabilities include in-app and web messaging, push notifications, email marketing, content personalization and automated lifecycle campaigns.

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