IBM announced today its definitive agreement to purchase StreamSets and webMethods from Software AG for approximately US$2.3 billion in cash.
This is technology M&A deal number 331 that ChannelE2E and MSSP Alert have covered so far in 2023. See more than 2,000 technology M&A deals for 2023, 2022, 2021, and 2020 listed here.
IBM, founded in 1911, is based in Armonk, New York. The company has over 316,000 employees listed on LinkedIn. IBM’s areas of expertise includeCloud, Mobile, Cognitive, Security, Research, Watson, Analytics, Consulting, Commerce, Experience Design, Internet of Things, Technology support, Industry solutions, Systems services, Resiliency services, Financing, and IT infrastructure.
Software AG, founded in 1969, is based in Darmstadt, Germany. The company has 3,991 employees listed on LinkedIn. Software AG’s areas of expertise include Business Process Analysis, In-Memory Data Management, Enterprise Architecture, In-Memory Big Data Intelligence, Governance, Risk & Compliance, Application Development, Integration, Database Management Systems, Business Process Management, Application Modernization, IoT, API Management, and Data Integration.
Acquisition Details and Implications
This acquisition is a strategic move by IBM to bolster its application and data integration solutions, essential for modernizing applications and deploying AI across enterprises.
The acquisition is set to enhance IBM's AI and hybrid cloud capabilities, according to the company. StreamSets, a cloud-native DataOps and data ingestion platform, and webMethods, an integration and API management platform, are positioned to complement IBM's existing portfolio, including its watsonx AI and data platform.
The deal, funded with available cash on hand, is subject to customary closing conditions, including regulatory approvals. It is expected to be completed in the second quarter of 2024.
IBM Acquires From Software AG: Leadership Insight
Rob Thomas, senior vice president, software and COO, IBM, commented:
"Together with IBM's watsonx AI and data platform, as well as its application modernization, data fabric, and IT automation products, StreamSets and webMethods will help clients unlock the full potential of their applications and data. This powerful combination helps drive innovation while preparing businesses for AI, no matter where applications or data reside. Today's news will give IBM clients and partners one of the most modern and comprehensive application and data integration platforms in the industry."
Sanjay Brahmawar, CEO, Software AG, said:
"IBM is the ideal home for webMethods and StreamSets, the products at the heart of our Super iPaaS vision. Combined with IBM's global scale and focus on hybrid cloud and AI, our people will have a fantastic opportunity to develop while helping enterprises everywhere get the most out of their applications and data."
Christian Lucas, chairman of the supervisory board of Software AG and managing partner of Silver Lake, added:
"We believe that there is no business more iconic or better suited than IBM to continue investing in and growing these great platforms. The opportunity to bring the StreamSets and webMethods teams together with IBM to innovate in building the future of hybrid cloud and next-generation AI solutions for the enterprise is uniquely compelling. We are pleased that our investment in Software AG helped spark that vision, reflecting Silver Lake's commitment to partner with the world's best management teams and technology leaders in driving exceptional value creation for customers, employees, and other stakeholders."
