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IBM has agreed to acquire data-infrastructure company Confluent in an all-cash deal valued at about $11 billion. The agreement values Confluent at $31 per share. IBM announced the deal on December 8, 2025, following market reports that described advanced discussions over the weekend.
The move strengthens IBM’s push into cloud software and enterprise AI. It also reflects a growing focus on data platforms that can support large-scale, real-time workloads across industries.
Confluent develops an open-source and managed platform that helps organisations process real-time data streams. Enterprises use these tools for event-based data flows, including banking transactions, retail demand signals, and application monitoring. IBM said the technology will help it offer a more integrated data layer for AI-driven systems.
IBM aims to combine Confluent’s streaming capabilities with its existing software stack. The company expects this approach to improve how clients connect, process, and govern data across hybrid environments. The announcement positioned Confluent as a key piece in supporting AI applications and AI agents at scale.
CEO Arvind Krishna has continued to steer IBM toward software and cloud-led growth. IBM has relied on acquisitions to strengthen its presence in automation, security and hybrid cloud. The company’s 2024 purchase of HashiCorp for $6.4 billion aligned with that strategy. It also supported IBM’s effort to expand infrastructure tools that enterprises use for AI-driven workloads.
Investors have tracked IBM’s cloud software performance after the business showed slower growth earlier in 2025. The Confluent acquisition adds scale in real-time data movement and event streaming. These capabilities help companies build modern cloud systems that depend on fast, reliable data pipelines.
Additionally, Confluent began evaluating a potential sale in October 2025 and hired an investment bank after drawing interest from possible buyers. The company held a market value of around $8 billion before the latest deal developments. The transaction highlights continued demand for data infrastructure as enterprises expand generative AI projects and upgrade analytics platforms.
Furthermore, the transaction fits a broader trend in the software sector. Large firms continue to invest in data platforms to support generative AI adoption. Salesforce’s agreement earlier in 2025 to acquire Informatica underscored the same demand for tools that can prepare, manage, and govern data for AI systems.
IBM said it will finance the acquisition with cash on hand. The companies expect to complete the deal by mid-2026, subject to regulatory and shareholder approvals. IBM also expects the transaction to support adjusted EBITDA in the first full year after close and to lift free cash flow in the second year.
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