IBM announces €2.1bn acquisition of StreamSets and webMethods from Software AG

IBM (NYSE: IBM) has entered into a definitive agreement with Software AG (FRA: SOW) to acquire two of its enterprise technology platforms, StreamSets and webMethods, for a staggering €2.13 billion in cash. This move marks a significant step in IBM’s journey towards enhancing its artificial intelligence (AI) and hybrid cloud offerings.

The Strategic Importance of StreamSets and webMethods

StreamSets and webMethods are recognized leaders in application integration, API management, and data integration. As organizations globally accelerate their digital transformations, these platforms are becoming essential for modernizing applications and deploying AI effectively across enterprises.

StreamSets’ Role in IBM’s AI and Data Platform

StreamSets, a cloud-native DataOps and data ingestion platform, will bolster watsonx, IBM’s AI and data platform. It provides consistent access and delivery of data from various sources and enables the design of smart data pipelines. This integration will significantly enhance IBM’s data handling capabilities.

IBM to Transform Enterprise AI with €2.13 Billion Acquisition of Software AG’s Platforms

Enhancing Hybrid Multi-Cloud Environments with webMethods

webMethods, an integration and API management platform, is set to offer additional integration tools and a modern API gateway for IBM’s clients and partners. This addition will further empower IBM’s position in managing complex hybrid multi-cloud environments.

Software AG’s Super iPaaS Platform

Software AG’s Super iPaaS platform, which includes StreamSets and webMethods, serves over 1,500 clients globally. These platforms have shown substantial growth and profitability, with a significant recurring revenue profile.

IBM’s Vision for Application and Data Integration

Rob Thomas, Senior Vice President, Software and Chief Commercial Officer at IBM, emphasized that the acquisition will unlock the full potential of applications and data. He highlighted that these platforms, combined with IBM’s existing portfolio, will drive innovation and prepare businesses for AI advancements.

Long-Standing Partnership between IBM and Software AG

The acquisition is a continuation of a more than 20-year relationship between IBM and Software AG. Both StreamSets and webMethods are expected to synergize with IBM’s current offerings, including watsonx, Red Hat, and its IT automation products.

Future Prospects and Global Impact

Sanjay Brahmawar, CEO of Software AG, and Christian Lucas, Chairman of the Supervisory Board of Software AG and Managing Partner of Silver Lake, expressed confidence in IBM’s ability to grow these platforms further. They believe IBM’s global scale and focus on hybrid cloud and AI will offer exceptional value to enterprises worldwide.

Transaction Details and Expected Completion

The acquisition, to be financed through available cash on hand, is subject to customary closing conditions and regulatory approvals. IBM expects the transaction to be completed in the second quarter of 2024.