IBM has agreed to acquire Confluent in an all cash deal valued at 11 billion dollars.
IBM has agreed to acquire Confluent in an all cash deal valued at 11 billion dollars, marking one of its most significant bets on real time data infrastructure for artificial intelligence. The agreement, announced in Armonk and Mountain View, will see IBM purchase all outstanding Confluent shares for 31 dollars each.
Confluent, known for its open source enterprise data streaming platform built on Apache Kafka, provides technology that connects and processes data in real time. This capability has become essential as enterprises deploy AI systems and AI agents that depend on reliable, connected data across cloud and on-prem environments.
IDC expects more than one billion new logical applications to be created by 2028. These applications, along with AI driven automation, need access to clean and trusted data without latency. IBM said the acquisition will allow it to deliver end to end integration of applications, analytics, data systems and AI agents across hybrid cloud environments.
IBM chief executive Arvind Krishna said the deal will help enterprises deploy generative and agentic AI faster by giving them a smart data platform that can move information across public clouds, private clouds and datacenters. Confluent co-founder Jay Kreps said joining IBM will accelerate Confluent’s strategy with the support of IBM’s global reach and broad product portfolio.
Confluent’s technology prepares data for AI by keeping it clean, connected and free of silos. Its total addressable market has doubled in four years to reach 100 billion dollars in 2025, driven by demand for real time data and event streaming. IBM plans to integrate Confluent’s capabilities with its automation and AI infrastructure software to target this growth.
The company said Confluent is a strong strategic fit with its hybrid cloud and AI roadmap. Global data volumes are expected to more than double by 2028. At the same time, rapid adoption of AI is increasing pressure on IT systems. IBM said the acquisition will create strong product synergies across AI, automation, data and consulting while improving operational efficiency.
Financially, IBM expects the deal to accelerate growth and become accretive to adjusted EBITDA within the first full year and to free cash flow in the second year after closing.
Confluent serves more than 6,500 clients, including over 40 percent of the Fortune 500. It works with major cloud and AI providers such as Anthropic, AWS, Google Cloud, Microsoft and Snowflake. Its portfolio includes managed cloud services, self managed platforms, hybrid models like WarpStream and private cloud options.
The boards of both companies have approved the transaction. Shareholders who hold about 62 percent of Confluent’s voting power have agreed to support the deal. The acquisition is expected to close by mid 2026, subject to regulatory and shareholder approvals.