Shares of software developer Braze soared 50%. Salesforce is set to acquire it for the "wow factor."

Shares of Braze, the owner of a marketing AI platform, soared nearly 52% on October 20—reaching their highest level since the beginning of 2025. Salesforce plans to acquire the company at a premium to market value in order to achieve a “wow effect” in customer interactions by combining its technologies with its own.

Braze shares rose nearly 52% on the Nasdaq on October 20, reaching $45.6. This is the highest level in more than a year and a half.

Investors reacted to the company’s announcement that it plans to be acquired by Salesforce, a developer of a cloud-based customer relationship management system. The deal values Braze at approximately $5.66 billion. Shareholders will receive $47.5 in cash for each share, according to a press release. That is 58% more than the stock’s value on October 19, the day before the deal was announced, Reuters noted.

The parties plan to close the deal in Salesforce's 2028 fiscal year (beginning February 1, 2027) following approval by Braze's shareholders and regulators.

Salesforce's marketing division is facing challenges: over the past few quarters, its revenue has either remained virtually flat or declined, according to Bloomberg. Marketers need agent-based solutions capable of understanding customers and acting in real time, the company said in a press release.

That’s exactly what Braze’s technology does: it processes customer behavior data in real time and helps companies personalize messages in mobile apps, on websites, in emails, via SMS, and through messaging apps. Artificial intelligence helps select content, offers, channels, and the timing of communications.

"Every interaction is an 'opportunity to impress customers,'" said Patrick Stokes, president of Salesforce's Apps and Marketing division (his comments are quoted in the press release). He believes that combining the capabilities of Braze and Salesforce will enable companies to achieve “that wow factor” with every interaction.

Following news of the planned acquisition, several Wall Street analysts downgraded their recommendations for Braze shares to “hold.” Sixteen analysts have assigned this rating to the company’s stock, while five others recommend buying it. Just a month ago, Wall Street unanimously recommended buying Braze shares. The average price target of $45.6 is slightly below the price Salesforce offered for the shares.

The planned deal is the right move for Salesforce, whose range of products the market has viewed as outdated, according to KeyBanc Capital Markets analyst Jackson Ader, as quoted by Bloomberg. The acquisition will allow Salesforce to eliminate Braze as a “vigorous competitor,” adds Piper Sandler analyst Billy Fitzsimmons.

TD Cowen analyst Derrick Wood assessed the antitrust risks of the deal as relatively low and attributed the high premium to potential competition among buyers. Evercore ISI considered the premium “somewhat strange,” unless there really were several bidders vying for Braze.