IBM to Acquire Confluent in $11 Billion Deal to Bolster AI Strategy

IBM announced on Monday its intent to acquire the data streaming platform Confluent for an estimated $11 billion. This significant transaction is intended to strengthen IBM's strategic focus on artificial intelligence technology.

The companies confirmed they have executed a formal agreement in which IBM will purchase all outstanding common stock of Confluent Inc. for $31 per share in cash. This valuation corresponds to an enterprise value of $11 billion.

Based in Mountain View, California, Confluent operates an open-source platform that enables the real-time linkage, processing, and management of data and events. According to a joint statement, Confluent's expertise lies in organizing data for AI applications and ensuring its integrity and connectivity across various systems and applications.

IBM CEO Arvind Krishna stated that the acquisition will facilitate the faster and more efficient implementation of AI services for IBM's clientele. He emphasized that this will be achieved by establishing reliable data and communication pathways across environments, applications, and APIs, particularly crucial given that "data is spread across public and private clouds, data centers and countless technology providers." The acquisition is projected to conclude in mid-2026, contingent upon obtaining approval from Confluent shareholders and necessary regulatory clearances.

Following the announcement, Confluent's shares, which had closed at $23.14 on Friday, experienced a 29% surge in premarket trading, while IBM's stock saw a minor decline of less than one percent.