Marketing Software Firm Braze Could Be a Hot Acquisition Target

This isn’t the year to be in marketing software. Companies’ marketing spending as a percentage of sales is at a five-year low, according to data from Gartner. That has hurt big software companies like Salesforce and Adobe, which get a chunk of revenue from selling marketing tools.

It’s also hurt smaller marketing software firms such as Braze, whose shares have fallen roughly 30% so far this year. But investors are missing an opportunity. Braze is picking up business, including from Salesforce and Adobe, thanks to its more sophisticated tools to customize marketing texts and emails, according to industry executives.