IBM’s Major AI Infrastructure Move: Acquiring Confluent for $11B
IBM, the technology giant, made a significant announcement on Monday. It has decided to acquire the data streaming platform, Confluent, in a cash deal worth $11 billion. This acquisition marks one of IBM’s largest, emphasizing its commitment to enhancing artificial intelligence infrastructure capabilities.
The deal values Confluent at $31 per share, a 34% premium over Friday’s closing price of $23.14. Following this announcement, Confluent’s shares soared by 29%, and IBM’s stock also gained ground. The strategic move was well-received by investors.
Confluent, the brainchild of the original creators of Apache Kafka, offers real-time data streaming technology. This technology serves as a “central nervous system” for companies, facilitating rapid data processing across various cloud environments and applications. For AI applications requiring real-time data processing and decision-making capabilities, this platform is indispensable.
“With the acquisition of Confluent, IBM will provide the smart data platform for enterprise IT, purpose-built for AI,” said IBM CEO Arvind Krishna.
The transaction is expected to close by mid-2026. It is anticipated to boost IBM’s adjusted EBITDA within the first year and contribute to free cash flow in the second year.
This acquisition is a part of IBM’s recent buying spree. It follows the $6.4 billion HashiCorp purchase in 2024. IBM is positioning itself to capitalize on the AI boom and compete with tech giants like Microsoft and Google in cloud services.
Source: Bloomberg