Updated Version 3 - Salesforce further increases its investment in the artificial intelligence sector by acquiring Braze for $5.66 billions.

The first paragraph was rewritten, and analyst comments were added to paragraph 6

Anzar Mehraj

Reuters, October 20 - Salesforce (CRM.N) is acquiring Braze (BRZE.O) in a deal valued at about $5.66 billion, further strengthening its artificial intelligence strategy by providing tools that help brands send personalized messages and respond to customer behavior in real time.

After the announcement, Braze's share price soared more than 50% on Tuesday.

Given investors' concerns that the rapid adoption of this technology could reduce demand for traditional software, the acquisition marks Salesforce's latest move to accelerate its transformation in artificial intelligence.

Braze shareholders will receive $47.50 in cash per share, representing a premium of roughly 58.1% over the previous day's closing price.

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Braze has about 2,770 clients, including Canva, Instacart, and Venmo. Its AI tools help marketers optimize content, offers, and channels.

Futurum Equities Chief Market Strategist Shay Boloor said that Salesforce is essentially acquiring "the real-time interaction layer that has historically been lacking in its marketing business."

The customer relationship management software provider expects the transaction to close in its fiscal year 2028 and believes the deal will not affect its performance expectations for fiscal year 2027.

Salesforce has been ramping up its artificial intelligence business, acquiring AI agent platform Fin earlier this year for $3.6 billion (link), and Informatica last year for $8 billion (link).

If Salesforce abandons the deal, the San Francisco-based company must pay a $300 million termination fee; if Braze withdraws, it must pay $191.4 million.

JPMorgan Securities is Salesforce's exclusive financial adviser, while Qatalyst Partners is advising Braze.

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