Salesforce to buy Braze for $5.7B, stock falls on valuation concerns

US enterprise software giant Salesforce (NYSE: CRM) announced on October 20, 2026, that it has agreed to acquire customer engagement platform Braze for approximately $5.7 billion in cash. Under the agreement, Salesforce will pay $47.50 per share for Braze, representing a premium of about 58% to Braze's Monday closing price of $30.04. The transaction is expected to close in Salesforce's fiscal year 2028, subject to shareholder and regulatory approvals.

Braze provides cross-channel personalized marketing services, with AI tools helping businesses optimize content and respond to customer behavior across websites, mobile apps, email, and text messages. Salesforce stated that the acquisition would strengthen its AI-powered marketing product portfolio, enabling businesses to act more quickly on customer behavior and deliver personalized experiences.

Despite the strategic intent, the market expressed concern over the deal's valuation. Analysts noted that the purchase price represents approximately 74 times Braze's projected earnings per share and an ~80% premium to its 30-day moving average. Evercore ISI analysts suggested that while the deal makes strategic sense, the unusually high premium could indicate competition for the asset and warrants scrutiny. Following the announcement, Salesforce shares fell, while Braze shares surged more than 50%, approaching the offer price.

Salesforce maintained its fiscal 2027 financial guidance unchanged. The company has recently relied heavily on acquisitions to expand its AI and data capabilities, including the $8 billion acquisition of Informatica in May 2025 and the $3.6 billion acquisition of AI customer service platform Fin in June 2026. These moves highlight Salesforce's aggressive integration of external technologies to address the risk of AI disruption to traditional enterprise software, though the high cost of these acquisitions has raised questions about capital allocation efficiency.