Braze (NASDAQ:BRZE) Stock Jumps on Salesforce (NYSE:CRM) Acquisition Offer Despite Loop Capital Downgrade
Key points
- Loop Capital Markets downgraded Braze (NASDAQ:BRZE) from Buy to Hold.
- Salesforce (NYSE:CRM) plans to acquire Braze for approximately $5.66 billion, offering $47.50 per share.
- Braze's stock surged over 50%, trading at $45.46, reflecting the acquisition offer.
Loop Capital Markets downgrades Braze (NASDAQ:BRZE) from Buy to Hold while the stock trades at about $45.44. Braze makes software that helps companies send messages to customers and track how they respond. Salesforce (NYSE:CRM), which sells business software, plans to acquire Braze for about $5.66 billion, as highlighted by Reuters.
Salesforce offers Braze shareholders $47.50 in cash per share. That is $2.06 above the stock’s price when Loop posts its downgrade. The offer also stands well above Monday’s $30.04 closing price, helping explain why the shares rise more than 50% Tuesday, as highlighted by CNBC.
At $45.46, Braze is up $15.42, or 51.31%. It trades between $45.26 and $45.58 during the day, reaching its 52-week high of $45.58. Its 52-week low is $15.26. About 50.9 million shares change hands, and its market capitalization is approximately $5.16 billion.
The gap between Braze’s $45.46 trading price and the $47.50 offer reflects that the deal is not yet complete. It is expected to close in Salesforce’s fiscal 2028 and still needs shareholder and regulatory approval. Braze CEO Bill Magnuson says the companies plan to keep investing in customers and partners while using Salesforce’s platform to develop new products.
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