Braze (BRZE) shares are up about 51% today (trading at about $45.50) after Salesforce (CRM) agreed to buy the marketing software company for $47.50 a share in cash.
The number to watch is the price per dollar of sales. Salesforce is paying about 6.2x Braze’s revenue guide for the fiscal year ending January 31, 2027. Salesforce itself trades at 4.75x next-twelve-month revenue, a later revenue period, so the two aren’t a straight comparison.
The Braze Deal Terms
- About $5.66 billion in enterprise value, all cash.
- About 58% above Braze’s $30.04 Monday close, and about 80% above its 30-day average.
- Closing expected in Salesforce’s fiscal 2028, which starts February 1, 2027.
- No change to Salesforce’s fiscal 2027 guidance.
- Salesforce would owe Braze a $300 million termination fee in specified cases tied to a permanent regulatory block or a failure to close by the contract deadline, subject to other conditions.
What Salesforce Paid for Braze
Braze traded at 3.14x next-twelve-month revenue before the offer. The deal values it at about 6.2x its fiscal 2027 revenue guidance, but that uses an earlier revenue period than the forward multiples for Adobe (3.43x) and HubSpot (2.70x).
Salesforce is paying up for growth, with Braze revenue up 26.2% last quarter. Profits are thin, though: Braze guides to about $76 million of non-GAAP operating income this year, under 9% of revenue. But the deal is small for the buyer: $5.66 billion is about 2.8% of Salesforce’s $199.5 billion market value. An expensive multiple on a cheap check.
Who Else Braze’s Price Tag Reprices
Salesforce fell about 3% before the open and was trading near flat, at about $242, by early afternoon. HubSpot climbed about 6%, potentially reflecting renewed takeover interest after the Braze announcement, though Adobe also rose about 2%. Braze’s $2 gap to the offer, about 4.4%, says traders expect the deal to close.
HubSpot (HUBS) is the name to watch. It went into Tuesday at 2.70x next-twelve-month revenue, below Braze’s 3.14x before the offer, and Salesforce still paid a 58% premium for Braze.
Want to see where your own software holdings sit against Braze’s takeout price? Pull up the same forward EV/revenue comparison for free on TIKR. Learn more here.
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