Klaviyo Inc (KVYO) News & EventsKVYOKlaviyo Inc

Citi Downgrades Braze to Neutral, Price Target $47.50

Citi downgraded Braze (BRZE) to Neutral from Buy with a price target of $47.50, down from $48, after the company agreed to be acquired by Salesforce (CRM) for $47.50 per share. The firm, which sees "a high likelihood of closure" and calculates Braze can add about $1B-plus in ARR to Salesforce next year, sees positive read-throughs for Klaviyo (KVYO).

Salesforce Acquires Braze for $47.50 per Share

After Salesforce (CRM) announced an agreement to acquire Braze (BRZE) for $47.50 per share in cash, or a $5.66B enterprise value, Jefferies said this deal marks the third major transaction in small-to-mid cap software since the start of last week after deals for CCC Intelligent Solutions (CCC) and Varonis (VRNS). The firm calls this latest deal "the spark that could lead to a strategic takeout" of MarTech peer Klaviyo (KVYO) should there be further consolidation in the category, adding that it views an acquisition of HubSpot (HUBS) as "low likelihood," but sees a private equity buyer as a more likely acquirer if a deal were to happen. For Twilio (TWLO), the deal underscores the strategic importance of CX infrastructure, but also creates concerns that Salesforce could look to disintermediate the company for messaging or pressure it on pricing, the analyst added.

William Blair Downgrades Braze to Market Perform, Acquisition Price $47.50

William Blair downgraded Braze (BRZE) to Market Perform from Outperform after Salesforce (CRM) announced it will acquire the company for $47.50 per share, or an enterprise value of $5.7B. The premium and valuation of the deal are "fair," says the analyst, who believes the deal is most likely to go through at this price. The firm ultimately does not believe this transaction will have a "material impact" on Zeta (ZETA) and Klaviyo (KVYO) given that they both compete in different segments of the market, the analyst added.