IBM acquires Confluent for $11 billion to build real-time data backbone for enterprise AI

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 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 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.

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 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 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 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 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)