Salesforce Buys Braze for $5.66 Billion at a 58% Premium
Salesforce has agreed to acquire customer engagement platform Braze for approximately $5.66 billion, at $47.50 per share in cash and at a 58% premium over its last closing price.
Salesforce has agreed to acquire customer engagement company Braze for an enterprise value of approximately $5.66 billion.
Braze Class A shareholders will receive $47.50 in cash per share, representing a premium of about 58% over the previous closing price of $30.04, as announced by both companies on October 20.
The deal price is below $65 per share, which was Braze's initial public offering price in 2021, highlighting the decline in valuations experienced by many software companies that went public in that year.
The deal is expected to close in Salesforce's fiscal year 2028, subject to approval by Braze shareholders and relevant regulatory authorities.
What do these terms mean?
Enterprise Value: The value of a company in an acquisition transaction, including equity value plus debt minus cash, rather than just the share price alone.
Price Premium: The amount a buyer pays above the prevailing market price of a stock to persuade shareholders to sell.
Class A Share: A class of common stock that typically grants voting rights to its holders, and may have different rights from other share classes in the company.
Regulatory Approval: Permission from a government authority responsible for competition or markets before completing a transaction that may affect competition.
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