IBM has inked a definitive agreement to acquire StreamSets and webMethods, both leading enterprise technology platforms owned by Software AG, for a colossal €2.13 billion in cash. This acquisition highlights IBM's commitment to fortify its AI and hybrid cloud offerings and expand its footprint in application modernization.
StreamSets and webMethods, recognized leaders in application integration, API management, and data integration, play pivotal roles in digital transformations for organizations. With the integration of StreamSets into IBM's AI and data platform, watsonx, and the incorporation of webMethods, clients can anticipate robust integration and API management tools for hybrid multi-cloud environments.
The acquisition is a testament to IBM's investment focus in AI and hybrid cloud, responding to the escalating significance of application and data integration solutions in the evolving digital landscape. Notably, this aligns with IDC's forecast predicting the integration software market to surpass $18.0 billion by 2027, marking a significant 16.1% compound annual growth rate (CAGR).
StreamSets, renowned for its cloud-native DataOps and data ingestion capabilities, empowers enterprises to seamlessly access and deliver diverse data types across varied sources. Conversely, webMethods, a versatile integration and API management platform, enables B2B integration, managed file transfer, and modern API gateway services, both on-premises and in the cloud.
These platforms are expected to unlock the full potential of applications and data, empowering innovation while preparing businesses for the AI-driven future, irrespective of data location.
IBM's Senior Vice President for Software and Chief Commercial Officer, Rob Thomas, expressed confidence in this union, stating, "Today's news will give IBM clients and partners one of the most modern and comprehensive application and data integration platforms in the industry."
This acquisition, expected to close in the second quarter of 2024, underscores the deep relationship between IBM and Software AG, fostering an environment of synergies that enrich IBM's existing portfolio, including watsonx, Red Hat, and IT automation products.
Sanjay Brahmawar, CEO of Software AG, praised IBM as the ideal custodian for StreamSets and webMethods. "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," said Brahmawar.
This strategic acquisition cements IBM's position as a formidable provider of global hybrid cloud and AI, underscoring its dedication to innovation, open solutions, and client-centric services.