IBM has announced plans to acquire Confluent, a US-based data management company, in a deal valued at $11 billion. The move aims to strengthen IBM’s presence in the rapidly growing field of real-time data management, which is crucial for the development and deployment of artificial intelligence (AI) applications.
The acquisition will bring together IBM’s AI and cloud computing capabilities with Confluent’s real-time data streaming platform, enabling businesses to connect and process data from various systems more efficiently. Confluent’s platform is used by over 6,500 clients, including more than 40% of Fortune 500 companies, to manage and analyze large volumes of data in real-time.
According to IBM’s chief executive, Arvind Krishna, the combined entity will enable enterprises to deploy generative and agentic AI more effectively and quickly. The deal reflects the increasing importance of real-time data management as companies rely more heavily on AI applications that require instant access to information from multiple sources.
Under the terms of the agreement, IBM will pay $31 per share in cash for all outstanding Confluent stock. Confluent’s major shareholders, who hold approximately 62% of the voting power, have agreed to support the transaction, which is subject to shareholder and regulatory approval.
The merger is expected to accelerate Confluent’s strategy, leveraging IBM’s global scale, go-to-market expertise, and extensive portfolio. Confluent’s CEO and co-founder, Jay Kreps, believes that the partnership will enable the company to expand its reach and capabilities, driving growth and innovation in the field of real-time data management.
The acquisition highlights the growing significance of real-time data management in the digital economy. As companies increasingly adopt AI and machine learning technologies, the need for efficient and scalable data management solutions has become more pressing. The deal is expected to reinforce IBM’s position in the AI and cloud computing markets, while providing Confluent with the resources and expertise to further develop its real-time data streaming platform.