Sat. May 25th, 2024

In a significant development for the tech industry, IBM has announced its decision to acquire two enterprise technology platforms from leading enterprise integration and software firm, Software AG. The transaction, which is worth €2.13 billion (US$2.33 billion) in cash, will involve the acquisition of StreamSets and webMethods, further bolstering IBM’s focus on strategic M&A to advance its AI and hybrid cloud offerings.

  • StreamSets, a DataOps and data ingestion platform, will enhance data ingestion capabilities for watsonx, IBM’s AI and data platform.
  • webMethods, an integration and API management platform, will provide IBM clients and partners with increased integration and API management tools for hybrid multi-cloud environments.

The Senior Vice President, Software and IBM’s Chief Commercial Officer, Rob Thomas, highlighted how these acquisitions will help clients unlock the full potential of their applications and data. This development is significant against the backdrop of organisations hastening their digital transformation, where application and data integration solutions are vital for application modernisation and effective AI deployment across enterprises.

These acquisitions follow a 20-year relationship between IBM and Software AG. The companies project that both StreamSets and webMethods will contribute synergistically to IBM’s current portfolio, including watsonx, Red Hat, the company’s IT automation products, and IBM Consulting.

The CEO of Software AG, Sanjay Brahmawar, noted that IBM’s focus on hybrid cloud and AI, in combination with its global scale, provides an ideal opportunity for the further development of webMethods and StreamSets. This combination can assist enterprises in maximising the utility of their applications and data.

Software AG is primarily owned by Silver Lake, employs around 5,000 people across more than 70 countries, and boasts an annual revenue exceeding €950 million. The firm’s technology furnishes the digital backbone to integrate applications, devices, data, and clouds, and it connects sensors, devices, and machines.

According to IDC, the worldwide integration software market is anticipated to surpass US$18 billion by 2027, growing at a compound annual growth rate of 16.1%. The strategic acquisition of StreamSets and webMethods by IBM reflects this growth trend.

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