IBM plans to purchase Confluent for $11 billion in an effort to strengthen its data solutions portfolio

IBM to Acquire Confluent in $11 Billion Cash Deal

IBM has announced plans to purchase Confluent, a data infrastructure firm, for $11 billion in cash. This move is aimed at strengthening IBM’s portfolio of data and automation solutions as more organizations transition their operations to the cloud and embrace artificial intelligence technologies.

The acquisition offer stands at $31 per Confluent share, representing a premium of roughly 50% over the company’s closing price last Friday, before the deal was made public.

Confluent specializes in providing a platform that enables businesses to manage and process real-time data streams. This capability has become increasingly vital as the adoption of AI accelerates, requiring robust data handling for tasks such as inferencing.

According to IBM, integrating Confluent’s technology will enhance its current suite of data and automation products, further advancing its capabilities in AI, automation, analytics, and consulting services. The company anticipates that the acquisition will positively impact EBITDA and free cash flow within two years of completion.

This transaction marks IBM’s largest acquisition in recent years, following its purchase of HashiCorp in 2024, and is part of a broader strategy to leverage the growing demand for AI-driven solutions.

In addition to this deal, IBM has recently entered into several partnerships and acquisitions, including a collaboration with Anthropic to integrate the Claude large language model into its offerings, a joint effort with AMD to develop a hybrid computing architecture combining quantum and AI chips, and the acquisition of data analytics startup Seek AI in June.