IBM and Confluent, the data streaming pioneer, have entered into a definitive agreement under which IBM will acquire all of the issued and outstanding common shares of Confluent for $31 per share, representing an enterprise value of $11 billion.
Confluent provides a leading open-source enterprise data streaming platform that connects, processes and governs reusable and reliable data and events in real time, foundational for the deployment of AI.
Confluent will be acquired with available cash on hand.
The board of directors of IBM and the board of directors and independent special committee of Confluent have each approved the transaction.
The acquisition is subject to approval by Confluent shareholders, regulatory approvals and other customary closing conditions. The transaction is expected to close by the middle of 2026.
“IBM and Confluent together will enable enterprises to deploy generative and agentic AI better and faster by providing trusted communication and data flow between environments, applications and APIs. Data is spread across public and private clouds, datacenters and countless technology providers,” said Arvind Krishna, IBM chairman, president and chief executive officer.
“With the acquisition of Confluent, IBM will provide the smart data platform for enterprise IT, purpose-built for AI,” he said.
Jay Kreps, CEO and co-founder of Confluent, said that since its founding, Confluent has helped organizations unlock the full potential of their data, driving innovation in an increasingly complex IT landscape.
“We are extremely proud of the work we’ve done in providing clients with a real-time data streaming platform for the next era of technology, including generative and agentic AI,” said Kreps.
Confluent is seen as a natural fit for IBM, consistent with the company’s hybrid cloud and AI strategy. The addition of Confluent will complement IBM’s existing capabilities in its Data and Automation portfolio.
Additionally, the acquisition of Confluent represents further commitment to IBM’s 25-year history of open-source innovation and investment, building on the acquisitions of open-source leaders like Red Hat and HashiCorp.
Also, the acquisition of Confluent is expected to drive substantial product synergies across IBM’s portfolio — including AI products and services, automation, data and consulting — and accelerate revenue growth by leveraging IBM’s go-to-market reach. The acquisition is also expected to result in significant operational efficiencies through IBM’s scale and best-in-class productivity actions.
Further, the acquisition of Confluent is expected to accelerate IBM’s growth over time. IBM also anticipates that the transaction will be accretive to adjusted EBITDA within the first full year and free cash flow in year two, post close.
