IBM to Acquire Software AG’s Enterprise Tech Platforms for $2.3 Billion in Cash
In Brief
IBM entered into a definitive agreement with Software AG to acquire its iPaaS enterprise technology platforms for $2.3 billion in cash.
IBM today disclosed its entry into a definitive agreement with German software corporation Software AG to acquire its iPaaS (integration platform-as-a-service) enterprise technology platforms, namely StreamSets and webMethods, for $2.3 billion (€2.13 billion) in cash.
According to IBM, StreamSets will add data ingestion capabilities to Watsonx, IBM’s AI and data platform, while webMethods will give clients and partners additional integration and API management tools for their hybrid multi-cloud environments.
Moreover, the purchase aligns with the company’s strategy to strengthen its position in the evolving landscape of AI and hybrid cloud solutions, it added.
“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,” said Rob Thomas, senior vice president, software and chief commercial officer at IBM.
“Today’s news will give IBM clients and partners one of the most modern and comprehensive application and data integration platforms in the industry,” Thomas added.
Further, IBM outlined the core offerings which include:
- StreamSets – a cloud-native DataOps and data ingestion platform which allows enterprises to achieve consistent access and delivery of data across a wide spectrum of data sources and types. StreamSets also facilitates the design of smart data pipelines and the ingestion of real-time and batch data.
- webMethods – an integration and API management platform. The integration platform, deployed both on-prem and in the cloud, offers B2B integration, managed file transfer, and provides a modern API gateway to manage, monitor, and monetize APIs.
“Given IBM’s global scale and focus on hybrid cloud and AI, our people have a fantastic opportunity to develop the Super iPaaS proposition with them. The brilliant people remaining with the company will continue innovating for the benefit of our customers, employees and all our other stakeholders,” said Sanjay Brahmawar, Software AG CEO.
Data Integration and AI Deployment in the Digital Era
In the fast-paced landscape of digital transformation, organizations are intensifying their efforts to modernize applications and seamlessly deploy artificial intelligence throughout their enterprises. This demands robust application and data integration solutions to ensure the success of application modernization initiatives.
As IBM explained, this is where StreamSets and webMethods come in, and are crucial for application integration, API management, and data integration.
“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,” said Christian Lucas, Chairman of the Supervisory Board of Software AG and Managing Partner of Silver Lake.
The consummation of the transaction is subject to customary closing conditions, including regulatory approvals, and is expected to be completed in the second quarter of 2024, mentioned the announcement.
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Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.
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Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.
