Salesforce Gets a Chilly Investor Response to a $6 Billion Deal at a 58% Premium

Dow Jones21:48

Salesforce said it is buying Braze.

Salesforce said Tuesday that it is making a nearly $6 billion acquisition at a 58% premium, but Wall Street's response was frosty.

Salesforce stock (CRM) fell 2%, good for the second-worst-performing component of the Dow Jones Industrial Average DJIA, after announcing the $5.7 billion, or $47.50 per share, cash offer for Braze $(BRZE)$, which closed Monday at $30.04.

Braze's stock jumped 51% to $45.42 in early trade.

Braze operates a customer-engagement platform that counts 2,770 customers, including Dairy Queen, Equinox and Instacart.

Salesforce said Braze will help businesses act on customer behavior in real time, deliver richer experiences across channels and improve personalization.

Analysts polled by FactSet expect Braze to earn 64 cents a share this year, putting the buyout at 74 times earnings. The purchase price equates to just over 6 times Braze's projected annual sales.

A Braze rival, Klaviyo $(KVYO)$, jumped 11%.

-Steve Goldstein

 

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