IBM Acquires Confluent for AI

IBM is set to acquire Confluent, a data streaming platform, for $11 billion in an all-cash deal. This acquisition aims to bolster IBM's AI capabilities by providing a smart data platform for enterprise IT. Confluent's platform is built upon Apache Kafka, an open-source data and event streaming platform. It enables real-time data integration and management, which is crucial for AI and hybrid cloud applications.

Confluent's technology addresses the challenges of modern data landscapes, preparing data for AI and ensuring its connectivity across systems. The acquisition is expected to enhance IBM's hybrid cloud and AI strategy, driving product synergies across AI, automation, data, and consulting services. IBM anticipates that Confluent will accelerate its revenue growth and expand its market reach in the rapidly growing data streaming and event processing market.

The deal also signifies IBM's continued commitment to open-source innovation, building upon previous acquisitions like Red Hat and HashiCorp. IBM expects the acquisition to boost adjusted EBITDA within the first full year and increase free cash flow in the second year after closing. The transaction is expected to close by the middle of 2026.