IBM and Confluent, a leader in real–time data streaming technologies, have entered into a definitive agreement for IBM to acquire all issued and outstanding shares of Confluent at $31 per share, valuing the transaction at approximately $11 billion. This acquisition marks a major strategic milestone in IBM’s efforts to deliver end-to-end smart data infrastructure designed for enterprise generative and agentic AI.
The integration of Confluent’s open-source data streaming platform will support IBM’s vision of connecting, processing, and governing reliable data in real time across hybrid cloud environments. As data continues to proliferate across public clouds, private clouds, and data centers, the acquisition aims to provide enterprises with a unified data backbone that supports AI agents and next-generation applications.
“IBM and Confluent together will enable enterprises to deploy generative and agentic AI better and faster by providing trusted communication and data flow between environments, applications and APIs. Data is spread across public and private clouds, datacenters and countless technology providers,” said Arvind Krishna, IBM chairman, president and chief executive officer.
Also Read: Microsoft Announces Preview Release of Data Ingestion Building Blocks for .NET to Accelerate AI-Driven Development
“With the acquisition of Confluent, IBM will provide the smart data platform for enterprise IT, purpose-built for AI.”
“Since its founding, Confluent has helped organizations unlock the full potential of their data, driving innovation in an increasingly complex IT landscape. We are extremely proud of the work we’ve done in providing clients with a real-time data streaming platform for the next era of technology, including generative and agentic AI,” stated Jay Kreps, CEO & Co-founder of Confluent.
“We are excited by the potential to join IBM and to accelerate our strategy with IBM’s go-to-market expertise, global scale and extensive portfolio. I look forward to the future we will build together as Confluent becomes part of IBM.”
Strategic Impact and Market Potential
Businesses want real-time, reliable data to boost productivity, automation, and AI apps. Market research shows that more than one billion new logical apps will appear by 2028. This growth will increase the demand for integrated data platforms. These platforms must support both traditional software and automated AI agents.
Confluent’s platform, built on Apache Kafka®, enables organizations to process and stream data efficiently across complex IT environments, helping eliminate silos and accelerate operational outcomes. The combined solution is expected to enhance IBM’s AI, data, and automation offerings, unlocking new business opportunities and driving greater synergy across hybrid cloud systems.
Financial and Operational Outlook
The acquisition should boost IBM’s adjusted EBITDA in the first year after closing. It will also provide extra free cash flow benefits in the second year. IBM anticipates that leveraging its global sales reach, combined with Confluent’s technology, will expand revenues and reinforce operational efficiencies.
Under the agreement, Confluent shareholders will receive $31 in cash for each share they own. The transaction, subject to customary regulatory and shareholder approvals, is projected to close by mid-2026.
