Braze Announces Agreement to Acquire OfferFit
Braze (BRZE) has announced a definitive agreement to acquire OfferFit, an AI decisioning company, for $325 million in a combination of cash and Class A common stock. The acquisition is expected to close in the fiscal quarter ending July 31, 2025.
OfferFit's technology specializes in recommending individualized cross-channel customer journeys through reinforcement learning agents that autonomously experiment and learn optimal actions. The acquisition aims to enhance Braze's agentic AI capabilities, building upon their Project Catalyst initiative announced in September 2024.
The integration will combine OfferFit's multi-agent approach with Braze's platform to deliver more sophisticated experimentation and 1:1 personalization for customer experiences. Brands using OfferFit's AI technology have already demonstrated improved uplift in areas such as new customer signups and reactivation campaigns for inactive users.
Braze (BRZE) ha annunciato un accordo definitivo per acquisire OfferFit, un'azienda di decisione basata su intelligenza artificiale, per 325 milioni di dollari in una combinazione di contante e azioni comuni di Classe A. Si prevede che l'acquisizione si chiuda nel trimestre fiscale che termina il 31 luglio 2025.
La tecnologia di OfferFit si specializza nel raccomandare percorsi individualizzati per i clienti attraverso agenti di apprendimento per rinforzo che sperimentano e apprendono autonomamente le azioni ottimali. L'acquisizione mira a potenziare le capacità AI agentiche di Braze, costruendo su iniziative come il Progetto Catalyst annunciato a settembre 2024.
L'integrazione combinerà l'approccio multi-agente di OfferFit con la piattaforma di Braze per offrire esperimenti più sofisticati e personalizzazione 1:1 per le esperienze dei clienti. I marchi che utilizzano la tecnologia AI di OfferFit hanno già dimostrato un miglioramento nelle aree come le iscrizioni di nuovi clienti e le campagne di riattivazione per utenti inattivi.
Braze (BRZE) ha anunciado un acuerdo definitivo para adquirir OfferFit, una empresa de toma de decisiones basada en inteligencia artificial, por 325 millones de dólares en una combinación de efectivo y acciones comunes de Clase A. Se espera que la adquisición se cierre en el trimestre fiscal que termina el 31 de julio de 2025.
La tecnología de OfferFit se especializa en recomendar recorridos personalizados para los clientes a través de agentes de aprendizaje por refuerzo que experimentan y aprenden de manera autónoma las acciones óptimas. La adquisición tiene como objetivo mejorar las capacidades de IA de Braze, construyendo sobre su iniciativa Project Catalyst anunciada en septiembre de 2024.
La integración combinará el enfoque multi-agente de OfferFit con la plataforma de Braze para ofrecer experimentación más sofisticada y personalización 1:1 para las experiencias de los clientes. Las marcas que utilizan la tecnología de IA de OfferFit ya han demostrado una mejora en áreas como las inscripciones de nuevos clientes y las campañas de reactivación para usuarios inactivos.
Braze (BRZE)는 OfferFit라는 AI 의사결정 회사를 3억 2천5백만 달러에 현금과 클래스 A 보통주 조합으로 인수하기로 확정 계약을 맺었다고 발표했다. 인수는 2025년 7월 31일로 끝나는 회계 분기에 완료될 것으로 예상된다.
OfferFit의 기술은 강화 학습 에이전트를 통해 개인화된 다채널 고객 여정을 추천하는 데 특화되어 있으며, 이들은 자율적으로 실험하고 최적의 행동을 학습한다. 이번 인수는 Braze의 에이전틱 AI 기능을 강화하는 것을 목표로 하며, 2024년 9월에 발표된 Project Catalyst 이니셔티브를 기반으로 하고 있다.
이번 통합은 OfferFit의 다중 에이전트 접근 방식을 Braze의 플랫폼과 결합하여 고객 경험을 위한 보다 정교한 실험과 1:1 개인화를 제공할 것이다. OfferFit의 AI 기술을 사용하는 브랜드들은 이미 신규 고객 가입 및 비활성 사용자 재활성화 캠페인과 같은 분야에서 개선된 성과를 보여주었다.
Braze (BRZE) a annoncé un accord définitif pour acquérir OfferFit, une entreprise de prise de décision basée sur l'IA, pour 325 millions de dollars dans une combinaison de liquidités et d'actions ordinaires de Classe A. L'acquisition devrait être finalisée au cours du trimestre fiscal se terminant le 31 juillet 2025.
La technologie d'OfferFit se spécialise dans la recommandation de parcours client individualisés à travers des agents d'apprentissage par renforcement qui expérimentent et apprennent de manière autonome les actions optimales. L'acquisition vise à renforcer les capacités d'IA agentique de Braze, s'appuyant sur leur initiative Project Catalyst annoncée en septembre 2024.
L'intégration combinera l'approche multi-agents d'OfferFit avec la plateforme de Braze pour offrir des expériences clients plus sophistiquées et une personnalisation 1:1. Les marques utilisant la technologie IA d'OfferFit ont déjà montré des améliorations dans des domaines tels que les inscriptions de nouveaux clients et les campagnes de réactivation pour les utilisateurs inactifs.
Braze (BRZE) hat eine endgültige Vereinbarung zur Übernahme von OfferFit, einem Unternehmen für KI-gestützte Entscheidungsfindung, für 325 Millionen Dollar in einer Kombination aus Bargeld und Class-A-Stammaktien angekündigt. Der Abschluss der Übernahme wird im Geschäftsjahr, das am 31. Juli 2025 endet, erwartet.
Die Technologie von OfferFit spezialisiert sich darauf, individualisierte, kanalübergreifende Kundenreisen durch Verstärkungslernagenten zu empfehlen, die autonom experimentieren und optimale Aktionen erlernen. Die Übernahme zielt darauf ab, die agentischen KI-Fähigkeiten von Braze zu verbessern und baut auf ihrer im September 2024 angekündigten Initiative Project Catalyst auf.
Die Integration wird den Multi-Agenten-Ansatz von OfferFit mit der Plattform von Braze kombinieren, um anspruchsvollere Experimente und 1:1-Personalisierung für Kundenerlebnisse zu bieten. Marken, die die KI-Technologie von OfferFit nutzen, haben bereits Verbesserungen in Bereichen wie der Anmeldung neuer Kunden und Reaktivierungskampagnen für inaktive Nutzer gezeigt.
- Strategic acquisition enhances Braze's AI capabilities in customer engagement
- Proven technology with demonstrated success in improving customer conversion rates
- Complementary integration with existing Project Catalyst development
- Expands Braze's technological advantage in real-time personalization
- Significant capital expenditure of $325 million may impact cash reserves
- Integration process could face technical challenges and delays
- Potential dilution for existing shareholders due to stock component of acquisition
Insights
Braze's $325 million acquisition of OfferFit represents a significant strategic investment, constituting approximately 8% of Braze's $4.05 billion market capitalization. The mixed cash-and-stock payment structure balances immediate capital deployment with equity dilution, suggesting a thoughtful financing approach.
The absence of disclosed revenue multiples or financial metrics for OfferFit makes direct valuation assessment challenging. However, the substantial price tag indicates Braze's conviction in the technology's value and potential revenue synergies. For context, this acquisition continues a trend of marketing technology platforms acquiring AI capabilities at premium valuations to enhance core offerings.
From a financial perspective, this represents a substantial bet on AI-driven customer engagement technology to drive future growth. While short-term earnings may see dilution from the acquisition costs and integration expenses, the long-term thesis appears focused on expanding Braze's technological moat and potential upsell opportunities to existing clients.
Investors should monitor several key metrics following integration: 1) adoption rates of the enhanced AI capabilities among existing clients, 2) changes in customer acquisition costs and retention rates, and 3) any acceleration in revenue growth attributable to the expanded AI offerings. The transaction's closing timeline (by July 31, 2025) provides ample opportunity for management to articulate specific financial targets and integration milestones.
This acquisition significantly accelerates Braze's AI roadmap and capabilities in the customer engagement space. OfferFit's technology isn't merely additive but transformative—providing autonomous experimentation and optimization capabilities that replace traditional manual A/B testing approaches with reinforcement learning.
The technology synergy is particularly compelling because OfferFit has already been integrated with Braze as a technology partner, suggesting lower integration risk than typical acquisitions. The complementary nature of their respective approaches—Braze's real-time stream processing technology and cross-channel orchestration combined with OfferFit's AI decisioning layer—creates a more comprehensive solution for personalized customer engagement.
The acquisition addresses a critical gap in most marketing platforms: truly automated, self-optimizing personalization at scale. While many platforms claim AI capabilities, few offer genuine reinforcement learning that continuously improves through autonomous experimentation. This approach allows for optimization across hundreds of personalization variables simultaneously, far beyond what human marketers could manually test or analyze.
The mention of improved uplift in specific use cases (new customer signups and reactivating inactive users) demonstrates tangible ROI potential. The additional expertise from OfferFit's team will likely accelerate Braze's Project Catalyst development, potentially giving them a significant competitive advantage in intelligent customer engagement optimization. This positions Braze ahead of competitors in offering truly autonomous customer journey optimization across channels, moving beyond rules-based approaches to genuine machine learning-driven personalization.
Braze furthers agentic AI innovation with acquisition of a leading AI decisioning company
AI decisioning agents can autonomously experiment, learn, and deliver highly relevant, personalized experiences. In September 2024, Braze shared its vision for agentic AI in customer engagement, building on its existing artificial intelligence research with the planned development of Project Catalyst. This native AI agent is designed to help brands personalize and optimize experiences with highly relevant Journeys, Content, and Incentives.
For four years, OfferFit has been building a multi-agent solution that recommends individualized cross-channel customer journeys in partnership with customer engagement solutions like Braze. Already brands have seen improved uplift by using the OfferFit AI technology, for example personalizing over a hundred characteristics within an email to promote new customer signups, or optimizing reactivation campaigns for inactive users. Once closed, Braze will be able to both more deeply integrate the existing sophisticated, multi-agent approach from OfferFit into its broader platform, and also leverage expertise from the OfferFit team alongside current Project Catalyst development to collectively drive more sophisticated experimentation and deliver 1:1 personalization for all aspects of a customer experience.
“At Braze, we’ve been innovating to help brands take advantage of frontier technology since our founding over a decade ago. From the beginning, our real-time stream processing technology differentiated Braze's modern approach to cross-channel Customer Engagement. Combined with Canvas as an orchestration layer and infused with BrazeAI throughout our stack, Braze is now responsible for the rapid and reliable delivery of trillions of personalized messages each year," said Bill Magnuson, Cofounder and CEO of Braze. “And now, with Braze's planned acquisition of OfferFit, our complementary products and teams will come together to define the next chapter of the evolution of Customer Engagement with AI. George, Victor, and I are incredibly excited about a future where reinforcement learning and modern transformer architectures are wielded within the Braze product ecosystem to drive a vision where Agentic AI automatically understands customers in greater depth, engages with them more completely, and strengthens customer relationships through heightened messaging relevance and intelligent optimization.”
“Like Braze, OfferFit was built to apply advanced technology to the hardest problems that marketers face. Focused on the decisioning layer, OfferFit replaces the manual work of A/B testing with reinforcement learning agents that autonomously experiment and learn optimal actions,” said George Khachatryan, Cofounder and CEO of OfferFit. “As a long-time technology partner of Braze, we already knew their team, and the synergies of joining forces were clear. As we come together formally, the excitement runs both ways as Victor and I look to leverage Braze's product ecosystem and global scale to enhance the existing OfferFit product, while also augmenting Project Catalyst and BrazeAI overall.”
Under the terms of the agreement, Braze will acquire OfferFit for
Additional details will be provided during the Braze Fourth Quarter Fiscal Year 2025 Financial Results Conference Call on Thursday, March 27th at 4:30 PM ET / 1:30 PM PT via Webcast available on the Braze investor relations website at investors.braze.com. Further details will also be available when the acquisition closes.
About OfferFit
OfferFit’s AI Decisioning Engine is a next-generation approach to personalization in CRM marketing. The old ways of personalization use a combination of propensity models, segments, manual A/B tests, and rules. OfferFit’s AI decisioning agents make 1:1 decisions on the optimal way to market to each individual customer. OfferFit works with top brands in telecom, energy, retail, travel, streaming video, and financial services, among others. Current customers include Brinks Home, Canadian Tire, Chime, Foxtel Group, LATAM Airlines, MetLife, Pizza Express, Trainline, Wyndham Hotels, and Yelp. OfferFit was founded by Victor Kostyuk and George Khachatryan and is headquartered in
About Braze
Braze is the leading customer engagement platform that empowers brands to Be Absolutely Engaging.™ Braze allows any marketer to collect and take action on any amount of data from any source, so they can creatively engage with customers in real time, across channels from one platform. From cross-channel messaging and journey orchestration to Al-powered experimentation and optimization, Braze enables companies to build and maintain absolutely engaging relationships with their customers that foster growth and loyalty. The company has been recognized as a 2024 U.S. News & World Report Best Companies to Work For, 2024 Best Small & Medium Workplaces in
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding the expected benefits from acquisition of OfferFit by Braze, and the expected performance and capabilities of its products resulting therefrom. These forward-looking statements are based on the current assumptions, expectations and beliefs of Braze, and are subject to substantial risks, uncertainties and changes in circumstances that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, among others, the risk that the transaction may not be completed in a timely manner or at all; any restrictions or limitations imposed by regulatory authorities; the extent to which we achieve anticipated financial targets; the impact of management and organizational changes on OfferFit’s business; the impact on OfferFit employees and our ability to retain key personnel; our effectiveness in integrating the OfferFit platform and operations with our business; and our ability to realize our broader strategic and operating objectives. Further information on potential factors that could affect Braze results are included in Braze’s Quarterly Report on Form 10-Q for the fiscal quarter ended October 31, 2024, filed with the
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Braze Media Contact:
Katelyn Bryant
press@braze.com
Source: Braze
FAQ
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