International Business Machines Corp (NYSE:IBM) said on Monday it has agreed to acquire Confluent Inc, a data streaming platform used by clients including Anthropic, Amazon Web Services and Google, in an all-cash deal valued at $11 billion.
Confluent, which focuses on connecting, processing, and managing reusable data for AI deployments, will continue operating as a standalone business under IBM.
The move marks IBM’s latest push to expand its artificial intelligence capabilities through software acquisitions. In recent years, the company has acquired Apptio for $4.6 billion in 2023 and cloud software firm HashiCorp for $6.4 billion last year.
“By keeping data clean across systems and applications, Confluent represents a best-in-class solution for preparing data for AI, which is critical for the agentic AI era,” analysts at Wedbush said. “This acquisition is a strong move by IBM to continue adding data processing capabilities to its hybrid cloud ecosystem while driving profitable growth.”
IBM shares were up 0.6% in early trading on Monday, while Confluent surged 28.5%.
The deal is expected to generate significant product and operational synergies, expanding IBM’s reach across AI products and services, automation, and consulting. Wedbush analysts noted the acquisition is projected to be accretive to IBM’s adjusted EBITDA in the first full year and to free cash flow in year two post-close.
The agreement builds on IBM’s strategy of combining inorganic growth with open-source innovation, following its previous acquisitions of HashiCorp and Red Hat. Analysts say the move positions IBM to capitalize on the growing global demand for hybrid cloud and AI solutions.