IBM Acquires Confluent for $11 Billion to Strengthen Enterprise AI and Data Streaming Capabilities

IBM to acquire Confluent for $11B as it seeks to bolster its data offerings | TechCrunch

IBM is buying data infrastructure company Confluent for $11 billion in cash in a bid to bolster its data and automation products as ever more companies move their tech operations to the cloud and deploy AI technology. The tech giant said it would offer $31 for each Confluent share, which is about 50% more than what the smaller company's shares closed at on Friday, before news of the deal. Confluent offers a platform that helps enterprises manage streams of data in real time, a use case that's exploded in demand as ever more companies develop and deploy AI products, which require significant back-and-forth processing of data for inferencing. IBM said Confluent will complement its existing data and automation products, as well as improve upon its existing offerings across AI, automation, data, and consulting. The company expects the deal to add to EBITDA and free cash flow in the two years after the deal is closed. This is the latest in a string of deals IBM has struck in recent months as it seeks to capitalize on the AI boom, though at $11 billion, Confluent would be the tech giant's largest buy in years, following its acquisition of HashiCorp in 2024. IBM in October signed a deal with AI lab Anthropic to deploy the Claude large language model into some of its products; it has partnered with AMD to develop a new computing architecture that combines quantum systems with AI-specialized chips; and it acquired data analysis startup Seek AI in June.

IBM drops $11B on Confluent to feed next-gen AI ambitions

Big Blue's latest mega-buy hands it a real-time data-streaming powerhouse built on Kafka IBM has cracked open its wallet again, agreeing to shell out $11 billion for Confluent in a bid to glue together the data sprawl underpinning the next wave of enterprise AI. The deal, announced Monday and just weeks after IBM laid off thousands, hands IBM a heavyweight in real-time data streaming as Big Blue bets that future generative and agentic AI systems will live or die on how well they can move and govern data across clouds, data centers, and legacy estates. IBM will pay $31 a share in cash for Confluent, whose Kafka-based platform has become a staple for organizations trying to pipe clean, consistent, and reusable data into applications and analytics engines. Arvind Krishna, IBM CEO, pitched the purchase as the cornerstone of a "smart data platform for enterprise IT, purpose-built for AI." With Confluent on board, he said: "IBM will provide the smart data platform for enterprise IT, purpose-built for AI," enabling "trusted communication and data flow between environments, applications, and APIs." Confluent has spent the past decade turning Apache Kafka into an enterprise-grade nervous system for data in motion. Jay Kreps, the company's CEO and co-founder, claimed it has helped customers "unlock the full potential of their data" in an increasingly messy IT landscape and cast the sale as a way to move faster by using IBM's global footprint. The timing suits both sides. Confluent claims its addressable market has doubled to $100 billion since 2021, propelled by organizations scrambling to ready data for generative models and autonomous software agents. IBM, meanwhile, has been stitching together pieces of an AI-first stack that spans infrastructure software, automation, consulting, and an expanding open-source portfolio. The deal will also complement IBM's existing Data and Automation portfolio, joining prior buys such as Red Hat and HashiCorp. Financially, IBM insists the numbers work. The company expects the purchase to be accretive to adjusted EBITDA within the first full year of closing and to lift free cash flow in its second year. It also flagged the usual synergy wishlist and touted "significant operational efficiencies" as Confluent scales under its umbrella. For Confluent's customer base, which includes more than 6,500 organizations and over 40 percent of the Fortune 500, the product portfolio remains the real draw. The company offers a spread of deployment models, from its fully managed Confluent Cloud and its self-managed Confluent Platform to the hybrid WarpStream and the private-cloud flavor designed for on-prem Kafka workloads. All center on the same promise: keep data fast, clean, and connected for real-time processing. The companies said the acquisition will give enterprises a more integrated route to feed AI agents, analytics systems, and hybrid-cloud applications with the kind of governance, observability, and resilience those systems demand. IBM will finance the purchase with cash on hand, and the boards of both companies have signed off. Confluent's largest shareholders, controlling about 62 percent of the voting power, have already agreed to back the deal. Regulators and the remaining shareholders still need to weigh in, but IBM expects the transaction to close by mid-2026. After that, it will be up to Big Blue to prove that welding a fast-moving data-streaming specialist onto a 113-year-old giant can produce more than just another layer in the stack. ®

IBM accelerates cloud drive with $11 billion Confluent deal as AI demand booms

Dec 8 (Reuters) - IBM (IBM.N), opens new tab said on Monday it will buy data infrastructure company Confluent (CFLT.O), opens new tab in a deal valued at $11 billion, ramping up its cloud-computing offerings to capitalize on an AI-driven demand boom. Big Blue, under CEO Arvind Krishna, has doubled down on M&A to beef up its cloud and software business - a high-growth, high-margin area - as customers invest to upgrade their digital infrastructure to house complex artificial intelligence applications. Mountain View, California-based Confluent provides technology needed to manage massive, real-time data streams for artificial intelligence models. "IBM and Confluent together will enable enterprises to deploy generative and agentic AI better and faster," Krishna said in a statement. "With the acquisition of Confluent, IBM will provide the smart data platform for enterprise IT, purpose-built for AI." TALKS BEGAN IN SUMMER The companies began initial talks about the possibility of a deal over the summer, building on their existing relationship through IBM's partner network, according to a source familiar with the discussions. After IBM signaled its interest, Confluent hired advisers and launched a formal auction process, but IBM ultimately prevailed, according to a source familiar with the matter. As part of the deal, Confluent CEO and co-founder Jay Kreps is joining IBM Software and will report to Rob Thomas, an IBM spokesperson said. Centerview advised IBM, while Morgan Stanley advised Confluent. Cooley served as Confluent's legal counsel, and Paul Weiss advised IBM. The offer price of $31 per share represents a premium of around 34% to Confluent's last close. Confluent's shares surged nearly 30%, while IBM was up marginally in early trading. The Confluent stock is up nearly 44% since October 7, the last trading session before Reuters reported that the company was exploring a sale after attracting acquisition interest. "IBM is buying the critical data firehose that supports the AI hype," said Michael Ashley Schulman, chief investment officer at Running Point Capital. "With this purchase, IBM improves ... recurring revenue, tightening its grip on large enterprises." STRING OF ACQUISITIONS IBM has long turned to deal-making to gain scale and fend off competition, especially in cloud computing. In April last year, the company bought cloud firm HashiCorp in a deal valued at $6.4 billion. Its $34 billion deal for Red Hat in 2019 is credited by analysts as the central catalyst that boosted its cloud business. IBM will fund the Confluent deal with cash on hand and the transaction is expected to close by the middle of 2026. The deal is expected to boost IBM's adjusted core earnings within the first full year of the transaction's completion and it will add to free cash flow in year two. Reporting by Arsheeya Bajwa in Bengaluru; Editing by Sriraj Kalluvila, Rod Nickel Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Transactional * Mergers & Acquisitions Milana Vinn Thomson Reuters Milana Vinn reports on technology, media, and telecom (TMT) mergers and acquisitions. Her content usually appears in the markets and deals sections of the website. Milana previously worked at GLG and PE Hub, where she spent several years covering TMT deals in private equity. She graduated from CUNY Graduate School of Journalism with Masters in Business Journalism.

IBM buys data streaming platform Confluent in $11 billion deal

IBM said Monday it's buying data streaming platform Confluent in a deal worth $11 billion that will help bolster the technology company's artificial intelligence strategy. The two companies said they signed a "definitive agreement" for IBM to acquire all of Confluent Inc.'s issued and outstanding common stock for $31 per share in cash, which represents an enterprise value of $11 billion. Confluent, based in Mountain View, Calif., is an open source data streaming platform that "connects, processes and governs" data and events in real time, the companies said in a joint statement. It specializes in preparing data for AI and keeping it "clean and connected across systems and applications," they said. The deal means IBM's client companies can deploy artificial intelligence services better and faster "by providing trusted communication and data flow between environments, applications and APIs," IBM CEO Arvind Krishna said in the statement. "Data is spread across public and private clouds, data centers and countless technology providers." The transaction is expected to close in mid-2026. It still needs approval from Confluent shareholders as well as clearance from regulators. Confluent shares, which closed at $23.14 Friday, surged 29% in premarket trading. Shares of IBM ticked down less than 1%.

IBM looks to secure data infrastructure with $11bn bid for Confluent

Confluent's total addressable market and revenue has risen sharply IBM has confirmed plans to buy data streaming company Confluent in an $11 billion deal - the equivalent of $31 per share. The deal sees IBM valuing Confluent around 34% higher than share prices suggested prior to the announcement, and it marks an important step in IBM's strategy to expand cloud, data, and AI infrastructure offerings. Confluent in particular specializes in managing large, real-time data streams that are present in AI workflows - as IBM hopes to build a smart data platform for generative and agentic AI. "With the acquisition of Confluent, IBM will provide the smart data platform for enterprise IT, purpose-built for AI," IBM CEO Arvind Krishna commented. In a press release, IBM cited IDC data suggesting that more than one billion new logical applications could emerge by 2028. "These applications, as well as AI agents, need access to connected and trusted data - in real time," the company wrote. This comes after a period of significant growth for Confluent. Its total addressable market has doubled from $50 billion to $100 billion inn the past four years. In the three months ending September 30, 2025, Confluent reported a 19% year-over-year rise in revenue - this was after a 20% rise the quarter before, and a 25% rise preceding that. CFO Rohan Sivaram credited the positive figures to "the momentum of [its] data streaming platform." Discussions with IBM about a sale of the company were believed to have started during its most recent quarter. "Since its founding, Confluent has helped organizations unlock the full potential of their data, driving innovation in an increasingly complex IT landscape," CEO Jay Kreps said in relation to the acquisition deal. IBM expects to complete the transaction by the middle of 2026.

IBM buying Coinfluent for $11 billion in AI push

Why it matters: This reflects CEO Arvind Krishna's belief that IBM's path to maintaining relevancy in the AI age is via open-source acquisitions. * He put together the Red Hat deal shortly before becoming CEO in 2020, and in the past year has acquired both Hashi and Confluent. * IBM's stock price has more than doubled during that time. By the numbers: IBM will pay $31 per Confluent share, representing a 34% premium over Friday's closing price. * Confluent went public in June 2021 and saw its shares peak later that year at $93.60. The bottom line: "IBM has been competing with Google, Microsoft and a number of startups to build computers that exceed the abilities of the best conventional ones. It is working on larger clusters of quantum chips that it expects will enable large-scale computing in the next five years." -- Lauren Thomas, WSJ

IBM to buy Confluent in $11 billion deal to bolster AI offerings

Data streaming platform Confluent is responsible for infrastructure that underpins AI systems, allowing companies to rapidly transfer information. International Business Machines Corporation (IBM) is buying data-streaming platform Confluent in a bid to bolster its AI offerings. The deal, worth $11 billion (€9.44bn) in total, will see IBM pay $31 per share in cash, a premium of around 34% on Confluent's Friday closing price. The transaction is set to be completed by mid-2026, according to a statement released on Monday. "IBM and Confluent together will enable enterprises to deploy generative and agentic AI better and faster by providing trusted communication and data flow," said Arvind Krishna, CEO of IBM. Jay Kreps, CEO of Confluent, added: "We are excited by the potential to join IBM and to accelerate our strategy with IBM's go-to-market expertise, global scale and extensive portfolio." Data streaming platform Confluent is responsible for the technical infrastructure that underpins AI systems. More specifically, Confluent allows companies to rapidly move and process information, providing technology that will be combined with IBM's own AI software. Confluent clients include ticket sales firm Ticketmaster, grocery delivery company Instacart, and tyre manufacturer Michelin. IBM said on Monday that it expects global data growth to more than double by 2028, amplified by the continued adoption of AI -- increasing demands on IT departments. Under CEO Arvind Krishna, the company has been boosting its AI offerings and acquiring a number of software companies. Earlier this year, IBM closed its acquisition of cloud firm HashiCorp in a deal valued at $6.4bn (€5.5bn). In its biggest deal to date, IBM also bought software firm Red Hat for about $34bn (€29.18bn) in 2019. Confluent had a market value of around $8bn (€6.87bn) as of Friday, while IBM's was around $290bn (€248.93bn).

IBM Bought a 'Nervous System' for $11 Billion | AIM

'The acquisition gives IBM more than 50% share in the event broker market.' IBM's decision to buy real-time data streaming company Confluent for $11 billion signals a shift in the AI race. Tech giants believe that controlling real-time data is as important as building powerful models. This acquisition comes in a year marked by similar moves. Salesforce purchased Informatica, while services firm Genpact acquired XponentL Data to expand its data and AI capabilities. These deals indicate that enterprise vendors want greater control over data feeding AI systems. IBM said its acquisition will combine its AI and automation software with Confluent's real-time data streaming capabilities, helping enterprises to connect, process, and govern data across environments. The companies said this will support AI agents and applications that require access to

CFLT stock price: IBM deal to buy Confluent for $11 billion shows investors still think AI is popping

IBM announced on Monday it is acquiring Confluent for $11 billion, sending shares of the data streaming platform up about 29% in morning trading. By midday trading, at the time of this writing, Confluent (CFLT) stock was holding steady, up 29%. International Business Machines Corporation (IBM) stock was up about 1.5%. Confluent provides a leading open-source enterprise data streaming platform that connects, processes, and governs reusable and reliable data and events in real time, foundational for the deployment of AI. The deal is an example of how IBM is actively engaging in the increasingly competitive, high-stakes AI arms race that's now dominating technology companies.

IBM will acquire Confluent to address growing needs for real-time data in AI models - SiliconANGLE

IBM will acquire Confluent to address growing needs for real-time data in AI models IBM Corp. said it has signed a definitive agreement to acquire streaming data firm Confluent Inc. in an all-cash transaction valued at approximately $11 billion. IBM will pay $31 per share in cash for all outstanding Confluent common stock. Confluent sells an enterprise version of the open-source Kafka data streaming platform, which it said is used by 80% of the Fortune 100. IBM said the addition of Confluent underlines a broader IBM push to build a unified "smart data platform" for enterprises deploying generative and agentic artificial intelligence. Executives from both companies said that the merger is rooted in the growing demand for trusted, real-time data in complex hybrid-cloud environments. "With the acquisition of Confluent, IBM will provide the smart data platform for enterprise IT, purpose-built for AI," said IBM Chief Executive Arvind Krishna in a statement. Confluent CEO and Co-Founder Jay Kreps (pictured) said joining IBM is an opportunity to accelerate Confluent's strategy globally. Analysts said the acquisition aligns with IBM's recent pattern of strategic deals to expand its footprint in cloud infrastructure and AI, beginning with the 2019 purchase of Red Hat Inc. and continuing, more recently, with the 2024 acquisition of infrastructure automation specialist HashiCorp Inc. While an acknowledged leader in streaming data, Confluent has struggled recently, posting disappointing results in its fiscal second quarter and lowering its outlook. Reuters reported in October that the company was exploring a sale. IBM said it expects the all-cash deal to be accretive to adjusted earnings before interest, taxes, depreciation and amortization in the first full year after the expected closing in mid-2026 and to generate positive free cash flow by the second year. The purchase price is a 34% premium to Confluent's $23.14 closing price yesterday. The deal appears to be intended to anchor IBM's AI stack in the foundational layer of data-in-motion. Confluent's streaming and event-data infrastructure is seen as critical to supporting enterprise-scale AI deployments as companies increasingly incorporate real-time data pipelines to feed analytics, automation, and generative-AI systems. The acquisition will also give IBM access to Confluent's 6,500 customers and expand its reach into existing enterprise data architectures as it sells its combined AI, data and cloud products.

IBM to acquire Confluent for $11 billion - recognition that enterprise AI needs a real-time data backbone

Christmas season is upon us and IBM has decided to treat itself to a substantial purchase. Big Blue has agreed to acquire Confluent for $11 billion, bringing the data streaming pioneer's real-time data context capabilities into the technology giant's hybrid cloud and AI portfolio. The deal is validation of Confluent's strategy to date, positioning itself as essential infrastructure for production AI - and acknowledgment that IBM's enterprise customers need more than batch-oriented data architectures if they want AI systems that actually work. The acquisition, announced today, will see IBM pay $31 per share in cash for Confluent, representing a significant premium for a company that has spent the past year or two building toward this moment. It was revealed recently that Confluent was courting buyers and the vendor's largest shareholders, holding approximately 62% of voting power, have already agreed to support the transaction. The deal is expected to close by mid-2026 subject to regulatory approvals. In terms of how this works for both companies' strategies: for Confluent, this a culmination of the vendor's efforts to shift its value from being a data streaming vendor to what CEO Jay Kreps calls "the context layer for enterprise AI"; for IBM, it helps address a key challenge across its install base - namely that hybrid cloud infrastructure is only useful if enterprises can actually move data reliably across those environments in real time. In the age of AI, this is something traditional batch architectures struggle with (which represents the majority of enterprise architectures). During Confluent's Current 2025 conference in New Orleans just two months ago, Kreps outlined the challenge facing enterprises wanting to move AI from prototype to production. The problem isn't model quality - it is data infrastructure. As I wrote at the time, organizations are discovering that AI pilots typically started with curated, prepared datasets without solving how to maintain, govern, and serve that context continuously in production. Kreps used a telling analogy during that conference keynote: If you were going to cross a busy street, would you be willing to do that if all you had access to was a photo of where the cars were yesterday? And the answer is no, that would be a very dangerous proposition. For IBM, this is likely the core issue it hopes to address. Enterprise data remains fragmented across databases, SaaS applications, data warehouses, and countless other repositories. Making that data useful for AI requires continuous processing, enrichment, and governance - not periodic batch refreshes. Confluent's platform, built on Apache Kafka with capabilities like Tableflow for batch-streaming unification and Flink for stream processing, goes a long way to providing a practical solution. IBM Chairman, President and CEO Arvind Krishna explained the rationale during the investor briefing: IBM and Confluent together will enable enterprises to deploy generative and agentic AI better and faster by providing trusted communication and data flow between environments, applications and APIs. Data is spread across public and private clouds, datacenters and countless technology providers. With the acquisition of Confluent, IBM will provide the smart data platform for enterprise IT, purpose-built for AI. The "smart data platform" language is noteworthy as IBM has been building out its hybrid cloud and AI strategy around Red Hat OpenShift and WatsonX, but arguably has lacked the real-time data movement layer that would make continuous, event-driven intelligence possible. Confluent could fill that gap. It's also worth pointing out the dual benefits of the acquisition, looking at financial reach and monetization. IBM's hybrid cloud products and solutions are used by approximately 95% of the Fortune 500. About 40% of the Fortune 500 are Confluent customers. However, less than 5 percent of Confluent's customers generate more than $1 million in annual recurring revenue. As IBM CFO Jim Kavanaugh highlighted during today's investor call: We are well positioned to accelerate growth for Confluent by leveraging IBM's enterprise incumbency scale, go-to-market strategy and global reach operating in more than 175 countries. Essentially, IBM has the embedded reach that Confluent needs. By taking a platform that has proven itself technically - Confluent reported 24% cloud growth and strong momentum with Flink in Q3 2025 - and scaling it across IBM's massive enterprise footprint, the two can scale together. Krishna also pointed to the product integration opportunities: IBM's existing application integration products, together with Confluent, will create a smart data platform for clients, enabling developers to work with a single interface to integrate applications, AI agents and data systems. This tracks with what I've been hearing from enterprises struggling to operationalize AI. The pilot-to-production challenge isn't just about technology - it's about having the organizational infrastructure and expertise to implement streaming-first architectures. No small feat. IBM brings substantial consulting and integration capability, while Confluent brings the foundational technology. The acquisition also represents continuation of IBM's open-source strategy. Following Red Hat and HashiCorp, Confluent extends IBM's solid history of building on open-source foundations. Apache Kafka, which Confluent commercialized, is embedded in enterprise applications - making this less about rip-and-replace and more about enhancing what's already there. Confluent has more than 6,500 clients across major industries and partners with technology leaders including Anthropic, AWS, Google Cloud, Microsoft, and Snowflake. We have reported many customer stories here on diginomica. . Kavanaugh noted the expected financial impact: We expect the transaction will be accretive to adjusted EBITDA within the first full year and free cash flow in year two, post close. IBM plans to fund the $11 billion acquisition with cash on hand, maintaining its investment-grade rating and dividend policy. Upon closing, Confluent's results will be reported as part of IBM's Data unit within Software. However, the technical and financial logic doesn't totally remove the organizational challenges I've been writing about in my Confluent coverage. As I noted after Current 2025, getting from organizational silos to a horizontal data platform that serves the entire enterprise is a significant undertaking. Shifting to stream processing as primary infrastructure rather than a complement to batch-based systems represents architectural, organizational, and cultural change. During conversations at Current, Confluent's Chief Product Officer Shaun Clowes acknowledged the "if it's not broken, don't fix it" mindset that enterprises grapple with. Existing data infrastructure supports analytics and reporting reasonably well. But as Kreps put it: I do think we're kind of moving out of a world where the most sophisticated use of data was about business intelligence - it was about insights, it was about reporting, it was about analysis. We're moving into a world where the most sophisticated use of data is about taking action. That shift from insight to action requires different infrastructure. IBM's consulting expertise and established customer relationships should help navigate this transition, but it remains a multi-year transformation journey for most enterprises. On paper, this acquisition makes strategic sense for both companies - and more importantly, it addresses a real problem that IBM's enterprise customers are facing: enterprises need reliable data infrastructure if they want production AI systems. Confluent has been assembling the pieces needed for this - Kafka's streaming foundation, Tableflow's batch-streaming unification, Flink's processing capabilities, and most recently the Real-Time Context Engine and Streaming Agents. The company's Q3 results showed momentum, with the largest net addition of $100,000-plus ARR customers in two years. IBM is acquiring a platform that has found product-market fit, not a speculative bet. The $11 billion price tag reflects both Confluent's strategic value and the urgency IBM feels around providing comprehensive AI infrastructure to its customers. As enterprises increasingly recognize that fragmented, stale data won't support production AI systems, the combination of IBM's consulting expertise and Confluent's streaming platform - in theory - addresses the right problem. The pieces are in place. Now comes the integration work.

IBM buys data streaming platform Confluent in $11 billion deal

IBM said Monday it's buying data streaming platform Confluent in a deal worth $11 billion that will help bolster the technology company's artificial intelligence strategy. The two companies said they signed a "definitive agreement" for IBM to acquire all of Confluent Inc.'s issued and outstanding common stock for $31 per share in cash, which represents an enterprise value of $11 billion. Confluent, based in Mountain View, Calif., is an open source data streaming platform that "connects, processes and governs" data and events in real time, the companies said in a joint statement. It specializes in preparing data for AI and keeping it "clean and connected across systems and applications," they said. The deal means IBM's client companies can deploy artificial intelligence services better and faster "by providing trusted communication and data flow between environments, applications and APIs," IBM CEO Arvind Krishna said in the statement. "Data is spread across public and private clouds, data centers and countless technology providers." The transaction is expected to close in mid-2026. It still needs approval from Confluent shareholders as well as clearance from regulators. Confluent shares, which closed at $23.14 Friday, surged 29% in premarket trading. Shares of IBM ticked down less than 1%.

IBM acquires Confluent to build real-time AI data platform

IBM has entered into a definitive agreement to acquire data streaming leader Confluent, a move designed to cement its infrastructure capabilities for the generative AI era. In a memo sent to employees on December 8, 2025, IBM Chairman and CEO Arvind Krishna described the acquisition as a "decisive step" that accelerates the company's hybrid cloud and AI strategy by establishing an "intelligent, always-on core" for enterprise data. The acquisition is predicated on the industry's shift from static data storage to real-time data movement. Krishna emphasized that as companies increasingly deploy AI agents, digital workers, and autonomous workflows, the need for "live" data signals has become critical. "Models are only as strong as the signals feeding them," Krishna wrote, arguing that modern operations -- ranging from millisecond transactions to instant supply chain adjustments -- require an infrastructure capable of moving data immediately from its source to where it is needed. By integrating Confluent, which specializes in real-time data streaming, IBM aims to complete the foundation of what it calls an "end-to-end Smart Data Platform". This platform is intended to unify batch processing systems with real-time streams, allowing clients to "move, manage, and act on data" across complex hybrid environments. Krishna highlighted that this capability opens one of the "largest new infrastructure opportunities of the AI era," as autonomous systems require continuous access to data to function effectively. The deal also reinforces IBM's strategy of absorbing category-defining open-source technologies to strengthen its enterprise stack. Krishna drew direct parallels to the company's previous acquisitions of Red Hat and HashiCorp, noting that Confluent fits the same "disciplined playbook" of identifying and scaling powerful open-source platforms globally. While financial terms were not disclosed in the internal announcement, the move signals a continued reliance on targeted M&A to bolster IBM's core pillars of automation, security, and integration.

IBM Buys Data Streaming Platform Confluent in $11 Billion Deal

IBM said Monday it's buying data streaming platform Confluent in a deal worth $11 billion that will help bolster the technology company's artificial intelligence strategy. The two companies said they signed a "definitive agreement" for IBM to acquire all of Confluent Inc.'s issued and outstanding common stock for $31 per share in cash, which represents an enterprise value of $11 billion. Confluent, based in Mountain View, Calif., is an open source data streaming platform that "connects, processes and governs" data and events in real time, the companies said in a joint statement. It specializes in preparing data for AI and keeping it "clean and connected across systems and applications," they said. The deal means IBM's client companies can deploy artificial intelligence services better and faster "by providing trusted communication and data flow between environments, applications and APIs," IBM CEO Arvind Krishna said in the statement. "Data is spread across public and private clouds, data centers and countless technology providers." The transaction is expected to close in mid-2026. It still needs approval from Confluent shareholders as well as clearance from regulators. Confluent shares, which closed at $23.14 Friday, surged 29% in premarket trading. Shares of IBM ticked down less than 1%.

IBM Is Buying This Data Streaming Platform for $11 Billion

IBM said Monday it's buying data streaming platform Confluent in a deal worth $11 billion that will help bolster the technology company's artificial intelligence strategy. The two companies said they signed a "definitive agreement" for IBM to acquire all of Confluent Inc.'s issued and outstanding common stock for $31 per share in cash, which represents an enterprise value of $11 billion. Confluent, based in Mountain View, Calif., is an open source data streaming platform that "connects, processes and governs" data and events in real time, the companies said in a joint statement. It specializes in preparing data for AI and keeping it "clean and connected across systems and applications," they said. The deal means IBM's client companies can deploy artificial intelligence services better and faster "by providing trusted communication and data flow between environments, applications and APIs," IBM CEO Arvind Krishna said in the statement. "Data is spread across public and private clouds, data centers and countless technology providers."

IBM in Talks to Buy Confluent for $11 Bn in Cloud, AI Push: Report | AIM

The potential takeover comes at a pivotal moment for IBM, which is under investor pressure to reinvigorate growth in its cloud software division. IBM is close to finalising a roughly $11 billion acquisition of data-infrastructure firm Confluent, according to a Wall Street Journal report, in what would be the tech giant's biggest bet yet to strengthen its cloud software and AI ambitions. The deal, which could be announced on December 8, the report noted, would give IBM control of Confluent, a widely adopted real-time data streaming platform that enables organisations to build, manage, and operate real-time data streaming applications at scale. Built on the open-source streaming platform Apache Kafka, companies across sectors use Confluent's platform to process everything from bank transactions to website clicks. The company's latest offering, Confluent Intelligence, aims to help enterprises build and scale context-rich and real-time AI systems. AIM reached out to Confluent but did not receive a response at the time of publishing. The potential takeover comes at a pivotal moment for IBM, which is under investor pressure to reinvigorate growth in its cloud software division. Despite IBM posting a 9% year-on-year growth in its topline in its third quarter, its stock slipped 6% on extended trading following the earnings results as investors grew wary about slowing momentum in core cloud offerings, raising concerns over its long-term trajectory. Confluent, valued at about $8.09 billion, has been exploring a sale and has hired an investment bank to manage the process after receiving interest from potential buyers, according to a Reuters report. IBM, meanwhile, holds a market capitalisation of roughly $287.84 billion. A successful acquisition would extend IBM's M&A strategy under CEO Arvind Krishna, who has sharpened the company's focus on cloud and software. Last year, IBM acquired HashiCorp in a $6.4-billion deal aimed at expanding its cloud-native and automation capabilities amid rising enterprise spending on AI. The interest in Confluent underlines the accelerating demand for data infrastructure platforms as companies race to build and deploy generative AI systems. In a similar move earlier this year, Salesforce agreed to buy Informatica for about $8 billion to enhance its AI-driven data stack.

Why Shares of AI Data Software Company Confluent Are Soaring on Monday

IBM will pay $31 per share for the data management software maker, valuing Confluent at $11 billion. Shares of Confluent (CFLT) surged Monday morning after IBM (IBM) announced a deal to acquire the software maker for $31 per share, valuing Confluent at $11 billion. Confluent's software helps companies manage and organize large amounts of data, an in-demand service as many companies are looking to manage massive data sets that are used in the training and running of artificial intelligence models. IBM said that Confluent "excels at preparing data for AI, keeping it clean and connected across systems and applications, eliminating silos inherent in agentic AI." IBM said that the company's total addressable market has doubled in the last four years to $100 billion. IBM will acquire Confluent with cash on hand, and said it expects the deal to close by the middle of next year as Confluent's largest shareholders, which control about 62% of the stock's voting power, have agreed to vote in favor of the deal. Confluent shares were up 29% in midday trading Monday. Coming into the week, the stock had lost 17% of its value since the start of the year. IBM shares were up 1.5%, boosting the stock's year-to-date gain to 42%. IBM is among the top performers in the Dow Jones Industrial Average in 2025, trailing only heavy machinery maker Caterpillar (CAT) and investment banking giant Goldman Sachs (GS). The deal could be a boost for IBM's software business, which it could use as slowing sales growth in its hybrid cloud segment disappointed investors in its latest earnings report in October. Wedbush analysts said following the announcement that they "believe this acquisition represents a strong move by IBM to continue adding more data processing capabilities to its hybrid cloud ecosystem while driving profitable growth over time." The analysts added that Confluent is "a natural fit for IBM's long-term growth strategy as the company addresses IBM's focus on eliminating data silos for powering AI," and said they "loudly applaud" what they expect will be one of more acquisitions to come. The Wall Street Journal had reported late Sunday that the sides were close to a deal. Reports emerged in October that Confluent was considering a sale and working with a bank to sort through its options, from private equity firms to tech companies.

IBM stock today: Is IBM a buy now as the mighty Confluent deal pushes IBM to finally turn on hyper-AI mode?

IBM is reportedly close to finalizing an $11 billion takeover of Confluent, a fast-growing player in real-time data streaming and enterprise AI data infrastructure. The proposed price represents a roughly 36% premium to Confluent's recent valuation of about $8.1 billion, underscoring how aggressively large technology companies are pursuing data-centric platforms that power artificial intelligence models and cloud automation. The acquisition would rank among IBM's largest deals in more than a decade, following its 2024 purchase of HashiCorp. It also signals IBM's deeper shift into the core architecture behind AI workloads, where real-time data pipelines are becoming essential for enterprise applications, automation, cybersecurity, and generative AI deployments. Confluent's platform enables companies to process massive streams of data in real time -- capabilities that have become critical for training AI systems, scaling cloud workloads, and modernizing legacy IT. By acquiring Confluent, IBM aims to strengthen its position across cloud integration, hybrid cloud modernization, and AI-driven enterprise services. Industry analysts say Confluent would expand IBM's ability to deliver end-to-end data architecture solutions, from ingestion to transformation to AI deployment. The pairing also gives IBM a faster route to compete with hyperscalers and data-infrastructure rivals as AI adoption accelerates across US corporations and global markets. Confluent shares jumped 28% to $29.52 in premarket trading Monday after The Wall Street Journal reported that IBM is nearing a deal to buy the real-time data-streaming company for around $11 billion. The report said the acquisition could be announced as early as Monday, citing people familiar with the talks. IBM shares also edged higher on the news. Neither company has commented on the report. Confluent's software has become critical for managing real-time data streams, a capability that enterprises now rely on to move private data into AI models at scale. This growing need for live data integration has elevated Confluent into a central player in the AI infrastructure market. IBM's stock has climbed about 40% year-to-date amid renewed confidence in its AI roadmap. The company recently partnered with Anthropic to bring the startup's models into IBM's enterprise software, adding momentum to its watsonx platform. The potential Confluent deal aligns with IBM's push to expand its control over AI data pipelines, the foundation of modern AI systems. By acquiring Confluent, IBM would add a powerful real-time data engine to its cloud and AI stack, giving its enterprise clients smoother paths to deploy generative AI models using their own private data. IBM has spent years reshaping its business, exiting legacy hardware, and shifting toward software, hybrid cloud, and consulting. The Confluent deal would represent one of its largest strategic bets since the HashiCorp acquisition, signaling a clear pivot to enterprise AI infrastructure. IBM trades at $307.94 as of December 8, 2025, down 0.02% on the day. The stock shows a strong year-to-date gain of nearly 39.5%, rising from $220.72 at the start of the year. It remains above its 50-day moving average ($296.49) and 200-day moving average ($267.44), supported by solid volume of 2.34 million shares. Despite the rise, analysts say IBM now trades at a fuller valuation. The company sits near a 36.75x trailing P/E with $8.38 EPS and a $288 billion market cap. Some see limited upside until earnings growth accelerates or new AI revenue proves durable. While IBM's AI consulting and watsonx bookings have surpassed $6 billion, competition from hyperscalers and shifting investor sentiment during the Fed's easing cycle continue to shape expectations. Analysts currently classify IBM as a Hold, not a clear Buy. The company has strong enterprise loyalty, rising AI demand, and proven recurring revenue, but its valuation has expanded quickly. If IBM completes the Confluent acquisition and successfully integrates real-time data streaming into its AI stack, the deal could strengthen its long-term position. But until the acquisition is confirmed and execution becomes clear, investors remain cautious.

IBM To Acquire Real-Time Data Leader Confluent In Blockbuster $11B Deal

With AI applications and agents increasing the demand for trusted real-time data, IBM plans to combine the Confluent platform with its AI infrastructure software and automation systems. IBM has struck a definitive agreement to buy real-time data streaming platform developer Confluent in a deal valued at $11 billion, the companies said Monday. IBM said that with Confluent's technology it can provide an "end-to-end platform for businesses to connect, process and govern data for applications and Ai agents." IBM is paying $31 per share for all issued and outstanding common shares for publicly held Confluent. That represents a nearly 34 percent premium over the $23.14 closing price for Confluent's shares on Friday, Dec. 5. On Monday, Confluent shares opened at $29.84 and continue to hover around that price. [Related: Meeting The Data Needs Of The AI World: The 2025 CRN Big Data 100] "IBM and Confluent together will enable enterprises to deploy generative and agentic AI better and faster by providing trusted communication and data flow between environments, applications and APIs. Data is spread across public and private clouds, datacenters and countless technology providers," said IBM President and CEO Arvind Krishna, in a press statement announcing the acquisition. "With the acquisition of Confluent, IBM will provide the smart data platform for enterprise IT, purpose-built for AI." Confluent, based in Mountain View, Calif., develops a series of products used to collect, process and manage continuous flows of real-time data from multiple sources -- data in motion, as Confluent refers to it -- for operational applications, data analysis and, more recently, artificial intelligence applications and AI agents. IBM, in the press statement, noted that IDC estimates that more than 1 billion new logical applications will emerge by 2028. "To fuel meaningful outcomes and drive productivity in operations, these applications, as well as AI agents, need access to connected and trusted data - in real time," the company said. "IBM and Confluent will enable end-to-end integration of applications, analytics, data systems and AI agents to drive intelligence and resilience in hybrid cloud environments." Confluent was founded in 2014 by former LinkedIn engineers Jay Kreps, Jun Rao and Neha Narkhede who developed the Apache Kafka open-source data and event streaming platform that Confluent's platform is based on. Today the company's products include the Confluent Platform, Confluent Cloud for deploying and scaling real-time data streams in the cloud, the Confluent Private Cloud managed service, and the WarpStream platform with a hybrid deployment model. The platform includes technology for data streaming, stream governance, stream processing, connectors, tableflow, streaming agents and the recently introduced Confluent Intelligence. "The real-time nature of Confluent's platform is critical for organizations as they leverage data living across all IT environments," the two companies said in the press statement. "Confluent addresses the challenges of today's technology and data landscape. Confluent excels at preparing data for AI, keeping it clean and connected across systems and applications, eliminating silos inherent in agentic AI. In the last four years alone, Confluent's total addressable market has doubled from $50 billion to $100 billion in 2025." "Confluent's real-time data and event streaming capabilities, combined with IBM's AI infrastructure software and automation offerings, will better position the companies to capture this opportunity," the companies said, while not disclosing IBM's detailed plans for Confluent once the acquisition is complete. Confluent has more than 6,500 clients, including 40 percent of the Fortune 500, across a broad range of industries. Confluent also works with a significant number of channel partners and over the last two-plus years has launched partner programs for ISVs, systems integrators, OEMs and MSPs. In July, the company committed to investing $200 million over the next three years to expand the reach and capabilities of its global partner ecosystem. Confluent also partners with all three cloud hyperscalers, Snowflake and other leading tech companies. IBM, in the acquisition statement, said Confluent's partnering strategy "is consistent with IBM's approach to deep industry partnership and working across a broad and open technology ecosystem of application providers, ISVs and hyperscalers." "Since its founding, Confluent has helped organizations unlock the full potential of their data, driving innovation in an increasingly complex IT landscape. We are extremely proud of the work we've done in providing clients with a real-time data streaming platform for the next era of technology, including generative and agentic AI," Confluent co-founder and CEO Jay Kreps said in the statement. "We are excited by the potential to join IBM and to accelerate our strategy with IBM's go-to-market expertise, global scale and extensive portfolio. I look forward to the future we will build together as Confluent becomes part of IBM." Confluent went public in June 2021, trading on the Nasdaq market. The company's shares plunged 32 percent on July 31 after a disappointing earnings report and news that it had lost business from a major customer. In October reports surfaced that Confluent was working with an investment bank on a potential sale with interest from private equity firms and other IT companies. For the company's 2025 third quarter, ended Sept. 30, Confluent reported total revenue of $298.5 million, up 19 percent from $250.2 million one year earlier. The company reported a net loss of $66.5 million for the quarter. The companies expect to close the acquisition by mid-2026. IBM's board of directors and Confluent's board of directors, as well as an independent special committee at Confluent, have approved the deal. The deal is subject to approval by Confluent shareholders, regulatory approvals and other customary closing conditions. The companies said that Confluent's largest shareholders and investors, who collectively hold about 62 percent of the company's outstanding stock, have agreed to vote their shares in favor of the acquisition.

Confluent Stock Skyrockets As IBM Seals $11 Billion Buyout - Confluent (NASDAQ:CFLT), IBM (NYSE:IBM)

International Business Machines Corp. (NYSE:IBM) agreed to acquire Confluent, Inc. (NASDAQ:CFLT) for $31 per share, giving the data streaming pioneer an enterprise value of $11 billion. Confluent stock surged after the deal. The deal brings Confluent's real-time, open-source data streaming platform into IBM's portfolio, enabling enterprises to connect, process, and govern reliable data and events in real time, a foundation for deploying AI at scale. Also Read: Buy IBM Stock On 'Short-Term Weakness,' Analyst Asserts After Q2 Performance Together, IBM and Confluent will integrate applications, analytics, data systems, and AI agents to enhance hybrid cloud intelligence and operational resilience. Growing Demand For Real-Time Data The partnership addresses the growing need for connected, trusted data, as IDC forecasts over one billion new applications emerging by 2028 that require real-time data access to drive productivity and AI capabilities. Confluent's platform prepares data for AI, keeping it clean, connected, and ready for real-time decision-making while eliminating silos. Over the past four years, Confluent's total addressable market doubled from $50 billion to $100 billion. Portfolio Expansion And Product Synergies Integrating Confluent with IBM's AI infrastructure, automation, and data offerings positions the combined company to capture the growing demand for enterprise AI solutions. The acquisition complements IBM's hybrid cloud and AI strategy, expanding its Data and Automation portfolio, and builds on IBM's 25-year history of open-source innovation through prior acquisitions like Red Hat and HashiCorp. The deal also promises product synergies, operational efficiencies, and revenue growth, leveraging IBM's global reach and ecosystem partnerships across Anthropic, AWS, GCP, Microsoft, Snowflake, and more. IBM and Confluent boards have approved the transaction, which is expected to close by mid-2026, pending Confluent shareholder and regulatory approvals. IBM held $14.9 billion in cash and equivalents as of September 30, 2025. The stock has gained over 40% year-to-date due to strong momentum from AI and hybrid cloud growth. IBM exceeded third-quarter expectations as strong results in its Infrastructure and Automation divisions offset slower performance in Red Hat and other software segments. Analyst Commentary Bank of America Securities analyst Wamsi Mohan noted a clean beat on revenue and earnings per share. Mohan highlighted that robust Automation and Infrastructure results countered weaker Red Hat (Hybrid Cloud) and Transaction Processing software outcomes. Even with the software slowdown, IBM raised its full-year 2025 guidance, projecting over 5% revenue growth, higher profit margins, and roughly $14 billion in free cash flow. Mohan also noted strong Consulting division performance, driven by AI-related business, and emphasized IBM's ongoing shift toward higher-margin software and services while maintaining solid cash generation. IBM Price Action: IBM shares were up 1.49% at $312.52 at the time of publication on Monday, according to Benzinga Pro data. CFLT Price Action: Confluent shares were up 28.69% at $29.85 at the time of publication on Monday. Read Next: Why TikTok Owner's AI Phone Is Making China's Apps Nervous Photo by JuliusKielaitis via Shutterstock CFLTConfluent Inc$29.7928.7%OverviewIBMInternational Business Machines Corp$312.561.50%Market News and Data brought to you by Benzinga APIs

Why IBM's $11 Billion Confluent Deal Could Supercharge Its Unique AI Strategy | The Motley Fool

International Business Machines (IBM +0.48%) is taking a distinctly different approach to artificial intelligence compared to its major tech peers. You won't see IBM plowing untold billions into massive AI data centers. In fact, IBM CEO Arvind Krishna stated in a recent interview with The Verge that he sees little chance of the trillions of dollars in capital spending on AI data centers yielding acceptable returns. Krishna is still excited about AI, but more so for the positive impact for enterprise clients. In the same interview, Krishna said that he expects AI to unlock trillions of dollars of enterprise productivity. IBM has already booked $9.5 billion in AI-related business, mostly from consulting signings, as the company focuses on delivering AI solutions for its enterprise customers. On Monday, IBM announced its intent to acquire data streaming specialist Confluent (CFLT +29.23%). Confluent has built its data and event streaming platform on top of Apache Kafka, a widely used open-source software. Kafka is widely used to link together software systems in a loosely coupled way, acting as a central event hub and eliminating hard-coded dependencies. In the age of AI agents, which may need to interact with a multitude of tools and data across internal and external systems, Confluent's platform is particularly appealing. Imagine multiple AI agents, each needing access to different tools while sharing information with each other at various points. In a tightly coupled system with direct communication, if one piece of the system hits an error, the whole thing can come crashing down. Using Confluent's event-based platform, AI agents can work independently while still sharing information through a central hub, insulated from failures in other parts of the system. With the acquisition of Confluent, IBM is adding another foundational piece to its cloud computing and AI stacks. Other pieces include Red Hat, the open-source software company IBM acquired in 2019, and the watsonx platform, which enables enterprise customers to build, deploy, manage, and govern AI models and agents. Confluent is a good fit for IBM partly because both companies are focused on the enterprise. Confluent counts 40% of Fortune 500 companies as its customers, and IBM has long-standing relationships with major enterprises and government organizations worldwide. IBM expects to achieve meaningful product synergies across its portfolio with Confluent on board. The company can sell Confluent's products to existing IBM customers, and it can sell IBM products and services to non-IBM customers that already use Confluent's platform. IBM expects the acquisition to accelerate its overall revenue growth over time, with free cash flow benefiting in the second year after closing. IBM is already undergoing an acceleration in revenue, thanks in part to its AI business. Even with inconsistent demand for discretionary tech projects, IBM expects to grow constant-currency revenue by more than 5% this year. That compares to 3% growth in both 2023 and 2024. Confluent's most recent guidance for 2025 calls for revenue of approximately $1.11 billion, up around 20% from 2024. While $11 billion is a lot of money to spend, IBM is betting that acquiring Confluent and its popular data streaming platform will generate a superior return compared to the capex-heavy strategies of other tech giants. At any rate, the deal aligns well with IBM's AI strategy and enhances its overall product portfolio.

IBM to Buy Confluent for $11 Billion to Expand AI, Data Platform | PYMNTS.com

Confluent provides software that moves data between systems in real time. Its technology is rooted in Apache Kafka, the open-source framework developed by Confluent's founders and widely used in enterprise applications. Bloomberg reported that Confluent has become a key provider of streaming data infrastructure for industries that rely on continuous data flows to run modern operations. IBM said the acquisition will expand its data and artificial intelligence (AI) platform, which spans hybrid-cloud services through Red Hat's acquisition, its AI software portfolio and its consulting practice. The company said Confluent will add real-time data capabilities that support the applications customers run across their environments. IBM did not disclose integration plans beyond stating that Confluent will maintain its brand and continue serving existing customers. Confluent is known for helping organizations move information the moment it is created, allowing operational systems to receive updates immediately instead of relying on batch transfers or end-of-day synchronization. Bloomberg reported that Confluent's technology is used by enterprises that need continuous visibility into transactions, inventory, logistics or customer activity. The company offers deployment options across cloud and on-premises environments and has positioned its platform as foundational for applications that depend on up-to-date information. Confluent went public in 2021 and has grown into a significant provider of data streaming services used in large enterprise systems. It is now one of the leading commercial vendors in this segment, supported by a broad customer base across industries. The Confluent acquisition follows a series of moves by IBM to expand its cloud and AI capabilities. The company acquired Red Hat in 2019 to support hybrid-cloud deployments and has since built a portfolio of AI software and model services that integrate with customer workflows. Bloomberg reported that IBM views real-time data handling as a growing requirement for enterprise systems that support automation and AI.

IBM Reportedly Nears $11 Billion Deal To Acquire Confluent, In Big Push Into Real-Time AI Data - Confluent (NASDAQ:CFLT), Salesforce (NYSE:CRM)

International Business Machines Corp (NYSE:IBM) is reportedly in advanced discussions to acquire data-infrastructure company Confluent Inc (NASDAQ:CFLT) for approximately $11 billion. IBM's Business Restructuring Around AI IBM is close to finalizing a deal to buy Confluent, a company that provides technology for managing real-time data streams used in large artificial intelligence models, reported The Wall Street Journal on Sunday. If completed, the acquisition would mark IBM's most significant recent deal as it continues restructuring its business around AI. The company had already strengthened its cloud and AI footprint last year by agreeing to buy cloud-software provider HashiCorp for $6.4 billion. The demand for Confluent's services has surged due to the AI boom, with companies in various sectors such as retail, technology, and financial services seeking its capabilities. See Also: Peter Schiff Says Trump Isn't Making The 'Affordability Crisis' Better, Challenges President To A Debate: 'He's Making It Worse' IBM's AI Momentum Amid Rising Tech M&A The potential acquisition of Confluent comes amid IBM's strong performance in the AI sector. In the third quarter of 2025, the company reported a 9% year-over-year increase in total revenue, driven by robust AI-related demand. IBM's stock also saw a significant rise in November 2025 after the company announced several major technological advancements, including the unveiling of its most advanced quantum processor, the Quantum Nighthawk. This move is expected to further enhance IBM's AI capabilities. This report also comes amid a host of M&A activities in the technology sector this year, highlighted by Salesforce's (NYSE:CRM) $8 billion Informatica deal in May and Palo Alto Networks' (NASDAQ:PANW) $25 billion agreement to acquire CyberArk. Benzinga's Edge Rankings place IBM in the 87th percentile for quality and the 71st percentile for growth, reflecting its strong performance in both areas. Check the detailed report here. Price Action: On a year-to-date basis, IBM stock climbed 13.18% as per data from Benzinga Pro. On Friday, it edged 0.02% lower to close at $307.94. On the other hand, Confluence stock declined 5.13% year-to-date. READ NEXT: The $8 Trillion AI Mirage: IBM Says The Math Just Doesn't Work Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. CFLTConfluent Inc$23.150.04%OverviewCRMSalesforce Inc$260.750.07%IBMInternational Business Machines Corp$307.50-0.14%PANWPalo Alto Networks Inc$199.170.16%Market News and Data brought to you by Benzinga APIs

IBM to Acquire Confluent for $11 Billion to Strengthen Cloud and AI Strategy

Investors have tracked IBM's cloud software performance after the business showed slower growth earlier in 2025. The Confluent acquisition adds scale in real-time data movement and event streaming. These capabilities help companies build modern cloud systems that depend on fast, reliable data pipelines. Additionally, Confluent began evaluating a potential sale in October 2025 and hired an investment bank after drawing interest from possible buyers. The company held a market value of around $8 billion before the latest deal developments. The transaction highlights continued demand for data infrastructure as enterprises expand generative AI projects and upgrade analytics platforms. Furthermore, the transaction fits a broader trend in the software sector. Large firms continue to invest in data platforms to support generative AI adoption. Salesforce's agreement earlier in 2025 to acquire Informatica underscored the same demand for tools that can prepare, manage, and govern data for AI systems. IBM said it will with cash on hand. The companies expect to complete the deal by mid-2026, subject to regulatory and shareholder approvals. IBM also expects the transaction to support adjusted EBITDA in the first full year after close and to lift free cash flow in the second year.

IBM boosts cloud computing push with US$11 billion Confluent deal

IBM said on Monday it will buy data infrastructure company Confluent in a deal valued at US$11 billion, ramping up its cloud-computing offerings to capitalize on an AI-driven demand boom. Big Blue's shares fell more than 2 per cent in premarket trading. The offer price of $31 per share represents an about 50 per cent premium to Confluent's closing price of $20.73 on October 7 - the last trading session before Reuters first reported its exploration of a sale after attracting acquisition interest. IBM has doubled down on M&As to beef up its cloud and software products - a high-growth, high-margin area - as customers invest in upgrading digital infrastructure to house complex artificial intelligence applications. In April last year, IBM bought cloud firm HashiCorp in a deal valued at $6.4 billion, as the company emphasizes inorganic growth under CEO Arvind Krishna. Mountain View, California-based Confluent provides technology needed to manage massive, real-time data streams for artificial intelligence models. IBM will fund the deal with cash on hand and the transaction is expected to close by the middle of 2026.

IBM in advanced talks to buy Confluent for roughly $11 bln - WSJ By Investing.com

Investing.com-- International Business Machines ( IBM ) is in advanced talks to buy data-infrastructure firm Confluent Inc (NASDAQ:CFLT) for about $11 billion, the Wall Street Journal reported on Sunday, citing people familiar with the matter. The report said a deal could be announced as soon as Monday, though the talks could still fall apart. Confluent last closed with a market value near $8 billion, while IBM was valued at roughly $290 billion, the WSJ said. Confluent provides technology that manages real-time data streams used in large AI models, and demand for its tools has risen across sectors, including retail and financial services. An acquisition would mark IBM's largest transaction in years as it reshapes itself around artificial-intelligence technologies, the report said. The newspaper noted that IBM agreed last year to buy cloud-software company HashiCorp for $6.4 billion, part of a broader pivot toward higher-growth cloud and AI businesses. IBM has been expanding its quantum-computing efforts and using AI to automate certain HR functions as it shifts staff toward programming and sales roles.

IBM to buy Confluent to grow AI data processing

IBM announced Monday its buying out Confluent, a steaming platform, in a multi-billion-dollar deal. Confluent stock shares spiked nearly 30% and IBM at about 1$ after it was revealed IBM will acquire Confluent for $11 billion. "With the acquisition of Confluent, IBM will provide the smart data platform for enterprise IT, purpose-built for AI," according to IBM CEO Arvind Krishna. The transaction is expected to be final by mid-next year, with IBM paying $31 a share for all issued and outstanding Confluent shares. IBM officials said it will aid the development of new artificial intelligence products likely to double data growth and flood the market by 2028. Krishna stated that data is spread across public and private clouds, data centers and "countless technology providers." "IBM and Confluent together will enable enterprises to deploy generative and agentic AI better and faster by providing trusted communication and data flow between environments, applications and APIs," he said in a statement. In April, IBM announced plans to invest at least $150 billion over a five-year period in U.S. manufacturing to advance IBM's mainframe and quantum computer systems. Confluent works with global conglomerates such as Microsoft, Anthropic, Snowflake, Google and Amazon. It was called a "strong move" by Wedbush analysts. "We loudly applaud this deal as Arvind [Krishna] takes IBM further into the AI Revolution with more acquisitions likely ahead," analysts told CNBC.

IBM boosts cloud computing push with $11 billion Confluent deal

Dec 8 (Reuters) - IBM said on Monday it will buy data infrastructure company Confluent in a deal valued at $11 billion, ramping up its cloud-computing offerings to capitalize on an AI-driven demand boom. Big Blue's shares fell more than 2% in premarket trading. The offer price of $31 per share represents an about 50% premium to Confluent's closing price of $20.73 on October 7 - the last trading session before Reuters first reported its exploration of a sale after attracting acquisition interest. IBM has doubled down on M&As to beef up its cloud and software products - a high-growth, high-margin area - as customers invest in upgrading digital infrastructure to house complex artificial intelligence applications. In April last year, IBM bought cloud firm HashiCorp in a deal valued at $6.4 billion, as the company emphasizes inorganic growth under CEO Arvind Krishna. Mountain View, California-based Confluent provides technology needed to manage massive, real-time data streams for artificial intelligence models. IBM will fund the deal with cash on hand and the transaction is expected to close by the middle of 2026. (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Sriraj Kalluvila)