The Salesforce Braze acquisition values the customer engagement platform at about $5.66 billion in enterprise value. Salesforce will pay $47.50 a share in cash, roughly 58% above Braze’s October 19 close of $30.04. That works out to about 6.2 times Braze’s fiscal 2027 revenue guidance. Braze shares jumped about 51% on the news. The deal is expected to close in Salesforce’s fiscal 2028.
Key takeaways
- Salesforce pays $47.50 a share in cash, a 58% premium to Braze’s last close.
- The $5.66 billion price is about 6.2x Braze’s $910–$913 million fiscal 2027 revenue guidance.
- Salesforce owes a $300 million break fee if the deal fails.
How much is Salesforce paying for Braze?
Salesforce is paying about $5.66 billion in enterprise value, or $47.50 per Braze Class A share in cash. The Salesforce press release confirms both figures. Reuters put the premium at about 58.1% over Braze’s last close.
CMSWire, citing CNBC and Reuters, puts that close at $30.04 on October 19. Braze stock jumped about 51% on October 20, after a brief premarket trading halt. Salesforce shares dipped.
The deal has two-way protection. According to Reuters, Salesforce owes a $300 million termination fee if the deal falls apart. Braze owes $191.4 million if it walks away.
| Deal term | Figure | Source |
|---|---|---|
| Enterprise value | ~$5.66 billion | Salesforce release |
| Price per share | $47.50 cash | Salesforce release |
| Premium to Oct. 19 close | ~58.1% (vs. $30.04) | Reuters, CNBC |
| Braze stock move, Oct. 20 | +~51% | Reuters, CNBC |
| Salesforce break fee | $300 million | Reuters |
| Braze break fee | $191.4 million | Reuters |
| Expected close | Salesforce fiscal 2028 | Salesforce release |
| Braze customers | ~2,770 | Salesforce release |
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Is $5.66 billion a fair price for Braze?
On revenue, the price looks modest for a company growing 26% a year. Braze guided fiscal 2027 revenue to $910–$913 million, so Salesforce is paying about 6.2 times forward sales. On trailing fiscal 2026 revenue of $738.2 million, the multiple is about 7.7 times.
The latest numbers come from Braze’s second-quarter fiscal 2027 filing. Revenue for the quarter ended July 31, 2026 rose 26.2% to $227.2 million. Subscription revenue was $207.7 million.
Remaining performance obligations reached $1.09 billion. Dollar-based net retention was 110%. Braze counted 2,789 customers, with 361 paying $500,000 or more a year.
The skeptical read on the premium
A 58% premium sounds rich. But it is measured against a depressed stock. Braze went public in November 2021 at $65 a share, according to PPC Land. Even after the bump, $47.50 is about 27% below that IPO price.
That is the real story for software investors. Salesforce is buying a growing, cash-generating company at a price public markets refused to pay on their own. Braze still posted a GAAP operating loss of $18.1 million last quarter, even as non-GAAP operating income hit $22.0 million.
For comparison, Schneider Electric paid a 42% premium in its $22.6 billion PTC deal earlier this month. Buyers are paying up for software assets that sell cheap.
Why is Salesforce buying Braze?
Salesforce wants a real-time engagement layer for its Marketing Cloud and its Agentforce AI agents. Braze turns live app and web behavior into personalized messages at scale. Salesforce plans to plug it into Data 360, Customer 360, Marketing Cloud and Agentforce.
Shay Boloor, chief market strategist at Futurum Equities, told Reuters that Salesforce is buying “a real-time engagement layer that its marketing business has historically lacked.” That is a blunt admission about Marketing Cloud, which grew out of the roughly $2.5 billion ExactTarget purchase in 2013.
The AI angle is central. In its second-quarter fiscal 2027 results, Salesforce said Agentforce annual recurring revenue topped $1.5 billion, up more than 240% year over year. Agents need fresh behavioral data to act on. Braze supplies it.
What Salesforce gets
- Customers: about 2,770 brands, including Canva, Instacart, Venmo and Urban Outfitters.
- Contracted revenue: $1.09 billion in remaining performance obligations at July 31.
- Cash flow: $21.7 million of free cash flow in the latest quarter.
- AI tooling: Braze’s AI decisioning tools, bolstered by its $325 million OfferFit purchase in 2025.
How does Braze fit Salesforce’s 2026 deal spree?
Braze is Salesforce’s largest acquisition of 2026 so far. It follows the roughly $3.6 billion Fin deal, the roughly $1.5 billion Contentful deal and the roughly $1.2 billion Qualified deal. Including Braze, those four disclosed prices come to about $12 billion this year, before counting the $8 billion Informatica purchase that closed in 2025.
CMSWire estimates Salesforce has spent about $24.6 billion on 16 priced marketing and customer-experience deals since 2010. That compares with about $11.2 billion for Adobe and $12.3 billion for SAP over the same span.
Salesforce can afford it. The company reported about $11.4 billion in cash and marketable securities at July 31. The Braze price equals roughly half of that pile. Salesforce also said the deal does not change its fiscal 2027 guidance of $46.1–$46.4 billion in revenue.
Salesforce has also been writing checks to private AI startups, as in the Wonderful AI funding round. Braze is different. It is a full takeover of a listed company.
Why this matters
The Salesforce Braze acquisition shows how incumbents plan to survive the AI agent shift: buy the data pipes their agents need. Reuters noted investor worry that fast AI adoption could erode demand for traditional software. Salesforce is answering with cash, not just product launches.
It also sets a price signal for mid-cap software. A 26%-growth company with positive free cash flow just sold for about 6 times forward revenue. That is far below the multiples private AI labs command. It mirrors a broader pattern in AI M&A, where chipmakers pay heavily for AI talent, as in AMD’s $8.2 billion World Labs deal, while classic software trades at a discount.
There is a risk on the other side. Braze has sold itself as the independent, composable alternative to suites like Marketing Cloud. Salesforce has not published a combined roadmap or pricing plan. Customers who do not run Salesforce CRM may start shopping for alternatives.
This article is for information only and is not financial advice.
What to watch next
The deal needs Braze shareholder approval and regulatory clearance, and Salesforce targets a close in its fiscal 2028. That fiscal year starts February 1, 2027, so the earliest close is about three and a half months away. No vote date has been set.
- February 1, 2027: Salesforce’s fiscal 2028 begins, opening the expected closing window.
- Braze proxy filing: the merger proxy should detail the sale process, any rival bidders and the fairness analysis by Qatalyst Partners.
- Antitrust review: watch for any second request from US regulators, given that Gartner ranks Braze and Salesforce as leaders in the same market.
- Salesforce third-quarter results: the company guided revenue of $11.42–$11.5 billion; management commentary on Braze integration costs and fiscal 2028 dilution will matter.
Salesforce Braze acquisition FAQ
How much is Salesforce paying per Braze share?
Salesforce will pay $47.50 in cash for each Braze Class A share, valuing the company at about $5.66 billion in enterprise value.
What premium does the Braze deal carry?
About 58.1% over Braze’s October 19 close of $30.04, according to Reuters and CNBC.
When will the Salesforce Braze deal close?
Salesforce expects it to close during its fiscal 2028, which begins February 1, 2027, subject to Braze shareholder and regulatory approvals.
What happens if the deal falls apart?
Salesforce would owe Braze a $300 million termination fee in certain cases. Braze would owe Salesforce $191.4 million if it walks away.
How big is Braze’s business?
Braze guided fiscal 2027 revenue to $910–$913 million. Second-quarter revenue rose 26.2% to $227.2 million, and it serves about 2,770 customers.
Will the deal change Salesforce’s guidance?
No. Salesforce said it expects no change to its fiscal 2027 guidance and has not yet issued fiscal 2028 guidance.
The bottom line
Salesforce is buying a growing, cash-positive engagement platform for about 6.2 times forward sales, a price that looks cheap next to Braze’s 26% growth. The headline premium flatters Braze holders less than it seems, since the deal still values the stock well below its 2021 IPO price.
Expect the deal to close in 2027 unless regulators push back or a rival bidder emerges, and both look unlikely with a $300 million break fee in place. The harder test comes after closing: keeping Braze’s non-Salesforce customers while folding its data into Agentforce.
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Sources
- Salesforce: Salesforce Signs Definitive Agreement to Acquire Braze (Oct. 20, 2026)
- Reuters via Investing.com: Salesforce deepens AI bets with $5.66 billion Braze deal
- Braze Form 8-K: Fiscal second quarter 2027 results
- Salesforce Form 8-K: Second quarter fiscal 2027 results
- CMSWire: What Does Salesforce’s Braze Deal Mean for Marketing Cloud Customers?
- PPC Land: Salesforce agrees to buy Braze for $5.66bn in cash
Wealth Engine researches and drafts with AI tools and checks every figure against the sources above. How we report.
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