The tech giant will pay $31 per share to acquire Confluent’s real-time data streaming infrastructure and integrate it into its cloud and AI services.
IBM and Confluent announced they signed a definitive agreement under which IBM will acquire Confluent in an all-cash transaction valued at approximately $11 billion. Under the terms of the deal, IBM will pay $31 per share for all outstanding Confluent stock.
Confluent provides data streaming software based on the open-source Apache Kafka project, which is used to process and move data in real time across cloud and on-premises systems. The company reported serving more than 6,500 customers worldwide, including large enterprises, through its managed cloud platform and related software offerings.
IBM said it will fund the acquisition using cash on hand. The transaction has been approved by the boards of both companies, and shareholders representing approximately 62% of Confluent’s voting power have agreed to support the deal. The acquisition is expected to close by mid-2026, subject to regulatory approvals and other customary closing conditions.
IBM Chief Executive Arvind Krishna said the acquisition is intended to strengthen IBM’s data and AI capabilities, particularly as customers deploy generative and agent-based AI systems that require access to real-time data. IBM said it would integrate Confluent’s technology into its existing cloud and AI infrastructure.
The deal continues IBM’s recent focus on expanding its software portfolio, particularly in cloud and automation tools. It follows IBM’s acquisition of HashiCorp last year and reflects a broader effort to position the company around hybrid cloud and AI-driven services.
Confluent shares rose sharply following the announcement, gaining more than 20% in after-hours trading, while IBM shares were little changed. Analysts noted that the transaction gives IBM greater exposure to enterprise data infrastructure, while raising questions about how the two companies’ platforms will be integrated and how regulators will review the acquisition.
