American business software company Salesforce has announced plans to acquire customer engagement platform Braze in a deal that sent Braze shares sharply higher.

The agreement forms part of Salesforce’s wider strategy to strengthen its services for businesses seeking to communicate with customers across digital channels.

Under the announced terms, Salesforce will pay $47.50 in cash for each Braze share. Following the announcement, Braze’s stock surged by more than 50% in trading, reflecting investors’ response to the proposed acquisition price.

Braze provides software that helps businesses manage personalized customer communications through channels such as email, mobile applications, and messaging.

Its technology is used by companies seeking to improve customer relationships and coordinate marketing campaigns.

For Salesforce, the acquisition would expand its customer engagement capabilities and add to its portfolio of business software products.

The deal also highlights continuing consolidation in the technology industry as companies seek to strengthen their offerings amid rapid advances in artificial intelligence and digital services.

However, Salesforce shares fell slightly following the announcement, indicating that investors may also be assessing the cost and strategic benefits of the transaction.

The long-term impact will depend on the completion of the acquisition and how successfully Salesforce integrates Braze’s technology into its existing business.

Sources: Associated Press and Barron’s.