Splurge $11 billion! IBM acquires data streaming platform Confluent, doubling down on AI real-time data processing.

IBM (IBM.US) announced that it will acquire data streaming platform Confluent (CFLT.US) for a total enterprise value of approximately $11 billion (including debt), with a transaction price of $31 per share, corresponding to an equity value of approximately $9.3 billion. The acquisition is expected to be completed in mid-2026 and will be one of IBM's largest strategic investments to date, aiming to strengthen its enterprise software layout in the field of real-time data processing for artificial intelligence. As of the time of writing, Confluent's pre-market stock price jumped nearly 30% to $29.08, still slightly below the $31 offer price, and the stock was quickly suspended from trading after the announcement; IBM's pre-market stock price fell nearly 1%. Currently, the AI boom has led to a wave of mergers and acquisitions, involving data center developers, software manufacturers, generative AI tool developers, and data management companies. Based in Mountain View, California, Confluent is at the forefront of the "data realm," with its platform enabling real-time data collection (streaming) and analysis, replacing traditional batch data processing methods. Renowned manufacturers such as Michelin utilize the Confluent platform to optimize real-time inventory management of raw materials and semi-finished goods; Instacart has built a real-time anti-fraud system relying on the platform, while achieving precise and visible control of grocery inventory. Increasingly, more and more enterprises are deploying AI systems that require real-time data flow support. IBM, whose main business is in the mainframe sector, has been actively reshaping its business landscape around the AI field in recent years. CEO Arvind Krishna has aggressively pursued software asset acquisitions and actively sold generative AI services to enterprise customers, with software revenues now accounting for nearly half of the company's total revenue. It is worth mentioning that this acquisition is IBM's largest deal since acquiring cloud software company Red Hat for around $34 billion in 2019. Unlike the recent trend in the industry focusing on AI mergers and acquisitions in the data center and computing power fields, IBM's acquisition of Confluent is aimed at strengthening its capabilities in real-time data streaming software. It is reported that this transaction is not a sudden move but built on a five-year collaboration between the two parties, with some of IBM's customers already able to use Confluent's data streaming platform before this. Before the disclosure of the acquisition negotiations, Confluent's stock price had already shown a downward trend this year, with a cumulative decline of 17% compared to its high point of $94.97 reached during its IPO in November 2021. It is worth mentioning that in February of this year, IBM successfully completed the acquisition of HashiCorp for $6.4 billion. Prior to this, IBM had also considered acquiring infrastructure software company Informatica, but ultimately Informatica was successfully taken under the wing of Salesforce, Inc. (CRM.US).