Why Braze Stock Soared This Week
A $5.66 billion cash buyout offer from cloud giant Salesforce (NYSE: CRM) sent customer engagement software maker Braze (NASDAQ:BRZE) soaring 56.3% this week.
Braze stock changed hands at $45.86 as of the close on Thursday, Oct. 22, up 56.3% from Friday, Oct. 16’s close through Thursday, Oct. 22’s close. Across those five sessions, the S&P 500 (SNPINDEX: ^GSPC) was flat, and the Nasdaq-100 was down 0.8%.
Announced Tuesday, Oct. 20, the definitive agreement gives Braze Class A shareholders $47.50 per share in cash, representing a 58% premium over its $30.04 closing price on Oct. 19. The $5.66 billion enterprise valuation delivers an immediate cash outcome for shareholders following a prolonged period of industrywide valuation compression in software. Under the terms, Salesforce will absorb the entire business, while Braze’s chief executive officer, Bill Magnuson, and the core leadership team will transition to Salesforce post-closing.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.