Technology giant IBM has announced an agreement to acquire StreamSets and webMethods, two enterprise software platforms, from Software AG for €2.13 billion. The purchase demonstrates IBM’s commitment to strengthening its capabilities in artificial intelligence (AI) and hybrid cloud solutions.
StreamSets offers a cloud-native data ingestion and pipeline platform, while webMethods provides integration and API management tools. Combined, they will enhance IBM’s watsonx AI and data stack as well as its broader application modernization and multi-cloud offerings.
The worldwide integration software market is growing at 16.1% annually, underscoring the rising demand. StreamSets and webMethods serve over 1,500 global clients with profitable recurring revenue models. They will likely see expanded reach and development leveraging IBM’s global footprint and resources.
As Rob Thomas, IBM’s Software Executive, stated: “Together with IBM’s watsonx platform, StreamSets and webMethods will help clients unlock the full potential of their applications and data.” Specifically, StreamSets will facilitate real-time data pipelines into watsonx to power enterprise AI adoption. Meanwhile, webMethods bolsters IBM’s integration and API capabilities for managing hybrid cloud deployments.
The $2.13 billion purchase comes after over 20 years working together. It is funded through IBM’s cash reserves and expected to close in Q2 2024 pending approvals. Sanjay Brahmawar, Software AG’s CEO, called IBM “the ideal home” for continued growth of the platforms.
For IBM, integrating StreamSets and webMethods accelerates its capacity to help companies innovate with AI and optimize hybrid cloud application performance. As businesses increasingly digitally transform operations, demand grows for the type of cutting-edge data and integration solutions IBM gains here.
In summary, the acquisition:
- Augments IBM’s watsonx and hybrid cloud portfolios for $2.13 billion
- Adds StreamSets for data ingestion and pipelines
- Gains webMethods for integration and API management
- Expands offerings as integration software market grows 16%+ yearly
- Leverages 20+ year IBM/Software AG partnership
- Closes mid-2024 after regulatory approvals
By purchasing StreamSets and webMethods, IBM is making a major investment to lead enterprises in leveraging AI and navigating hybrid cloud complexity. The deal enhances IBM’s ability to partner on digital transformation and next-generation solutions.