IBM Set to Buy Confluent, Accelerating its Smart Data Platform for Generative AI

The data streaming pioneer Confluent, Inc., and IBM have announced that they have reached a final agreement whereby IBM would pay $31 per share, or an enterprise value of $11 billion, for all of Confluent's issued and outstanding common shares. Confluent is a top-tier open-source enterprise data streaming platform that connects, processes, and controls dependable, reusable data and events in real time, laying the groundwork for the application of AI. By 2028, IDC projects that over a billion new logical applications will appear, changing technology architectures in a variety of industries.

These applications, together with AI agents, require real-time access to linked and reliable data in order to provide significant results and boost operational productivity. To promote intelligence and resilience in hybrid cloud environments, IBM and Confluent will make it possible to integrate apps, analytics, data systems, and AI agents from start to finish. IBM chairman, president, and CEO Arvind Krishna said that by facilitating reliable communication and data flow between environments, apps, and APIs, IBM and Confluent would help businesses implement generative and agentic AI more effectively and more quickly.

Data is dispersed among numerous technology suppliers, data centres, and public and private clouds. IBM will offer the enterprise IT smart data platform designed specifically for AI with the acquisition of Confluent.

Specifics of the Deal

As per the deal, IBM will purchase all of Confluent's issued and outstanding common shares for $31 per share in cash, which amounts to an enterprise value of $11 billion. Cash in hand will be used to purchase Confluent. The transaction has been approved by both the IBM board of directors and Confluent's board of directors and independent special committee.

The transaction is contingent upon regulatory approvals, Confluent shareholder approval, and other usual closing conditions. In a voting agreement with IBM, Confluent's biggest investors and shareholders, who together control about 62% of the voting power of Confluent's outstanding common stock, committed to voting all of their common shares in support of the deal and against any other deals. By the middle of 2026, the deal is anticipated to close.

How Confluent Operates?

Confluent tackles the problems posed by the data and technology environment of today. Confluent is excellent at preparing data for AI, maintaining its cleanliness and connectivity across systems and applications, and removing the silos that come with agentic AI.

Confluent's total addressable market (TAM) has doubled in just the last four years, from $50 billion to $100 billion in 2025. The firms will be better positioned to take advantage of this opportunity thanks to Confluent's real-time data and event streaming capabilities and IBM's AI infrastructure software and automation products.