Salesforce-Braze Deal Draws Downgrades as Analysts Assess Acquisition Value
Key takeaways
- Salesforce’s $5.66 billion purchase of Braze caps Braze’s upside but offers a strategic fit that could revive Salesforce’s marketing growth, prompting analysts to downgrade the stock to neutral.
- $5.66 billion enterprise value
- 5.3× 2028 estimated sales
- 5.7× current revenue run‑rate
What happened
Salesforce announced it will acquire Braze, Inc. for about $5.66 billion in enterprise value, valuing Braze at roughly 5.3‑times its 2028 projected sales and 5.7‑times its current revenue run‑rate. The deal was disclosed on Wednesday, sending Braze shares slightly lower in a volatile session. Several analysts, including BTIG and Piper Sandler, downgraded Braze to neutral, noting limited upside for the stock after the acquisition and a premium that leaves little room for competing bids.
Why it matters
The transaction positions Salesforce to strengthen its Marketing Cloud with Braze’s cross‑channel engagement tools, potentially reviving growth in Salesforce’s lagging Marketing and Commerce segment. For Braze, the deal offers shareholders a valuation above its two‑year average multiple and a strategic fit that could…
Short-term and longer-term
Short-term. Over the next few days, Braze shares may react to the announcement of the deal’s closing timeline and any updates on integration plans.
Longer-term. Over the coming months, investors should assess how the acquisition affects Salesforce’s long‑term growth trajectory, particularly in marketing and commerce.