IBM aims to boost AI offerings with $2.3B acquisition
IBM announced on Monday its plans to buy Software AG's StreamSets and webMethods platforms for $2.3 billion cash in a move aimed at bolstering the tech giant's artificial intelligence and hybrid cloud offerings.
The two platforms together make up Software AG's Super integration platform-as-a-service (iPaas) enterprise tech platform, which serves more than 1,500 clients globally.
IBM will use StreamSets to add data ingestion capabilities to its AI platform watsonx, and webMethods will allow IBM to provide further integration and application programming interface (API) tools to clients for their hybrid multi-cloud environments, the company said in a press release.
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"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," said Rob Thomas, senior vice president of software and chief commercial officer at IBM. "This powerful combination helps drive innovation while preparing businesses for AI, no matter where applications or data reside."
Software AG is majority owned by private equity firm Silver Lake, which currently owns 93.3% of shares in the German software company, following a takeover pursuit spanning several months. That deal valued the whole business at 2.6 billion euros ($2.84 billion).
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"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," said Christian Lucas, chairman of the supervisory board of Software AG and managing partner of Silver Lake.
"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," Lucas added.
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IBM's acquisition of the two Software AG platforms is expected to be completed in the second quarter of 2024.
Reuters contributed to this report.