IBM has entered into a definitive agreement to acquire SoftwareAG’s StreamSets and webMethods platforms for $2.3 billion (€2.13 billion), as the tech giant looks to expand its hybrid cloud and AI product portfolios.
The German enterprise software firm’s super integration platform-as-a-service (iPaaS) offerings tackle application integration, API management, and data integration, and currently serve more than 1,500 clients around the world.
Acquired by Software AG just last year, cloud native DataOps and data ingestion platform, StreamSets, enables enterprises to leverage consistent access and delivery of data across a wide spectrum of data sources and types, as well as facilitates the design of smart data pipelines.
Integration and API management platform, webMethods, which has been in the company’s hands since 2007, provides B2B integration, managed file transfer, and enables the management, monitoring, and monetization of APIs.
Upon expected completion of the deal in Q2 2024, StreamSets will bring data ingestion capabilities to IBM’s watsonx AI platform, while webMethods will serve up additional integration and API management tools for hybrid multi-cloud environments.
In an announcement, Rob Thomas, IBM’s senior vice president for software and chief commercial officer said the solutions will help clients “unlock the full potential” of their applications and data.
“This powerful combination helps drive innovation while preparing businesses for AI, no matter where applications or data reside," he said.
"Today's news will give IBM clients and partners one of the most modern and comprehensive application and data integration platforms in the industry."
The move follows the acquisition of Software AG by Silver Lake earlier this year. Since the initial purchase, the private equity firm has increased its stake in the software business to 93% and has revealed plans to take the company private.
For IBM, the acquisition of StreamSets and webMethods is the culmination of a more than 20-year relationship with the Darmstadt-based company and marks the next step in its continued investment in artificial intelligence and hybrid cloud.
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The technology giant said it expects the platforms to “drive synergy” with its existing portfolio, which includes watsonx, Red Hat, its range of IT automation offerings, as well its IBM Consulting business.
"IBM is the ideal home for webMethods and StreamSets, the products at the heart of our Super iPaaS vision," commented Sanjay Brahmawar, CEO of Software AG.
"Combined with IBM's global scale and focus on hybrid cloud and AI, our people will have a fantastic opportunity to develop while helping enterprises everywhere get the most out of their applications and data."
StreamSets and webMethods will be acquired with available cash on hand, IBM said, with the completion of the acquisition subject to customary closing conditions.
