IBM confirmed plans to acquire data streaming company Confluent in a massive $11 billion deal. The tech giant agreed to pay $31 per share, a price that values Confluent about 34% above its pre-announcement stock price. This move marks a critical step in IBM’s strategy to expand its cloud computing and artificial intelligence capabilities.
Confluent specializes in managing large, real-time streams of data. This technology is becoming essential for companies running complex AI models. IBM CEO Arvind Krishna explained that the acquisition allows IBM to build a “smart data platform” specifically designed for enterprise IT. The goal is to support better generative AI and AI agents, which require instant access to trusted information to work correctly.
The company cited market research suggesting that developers will create over 1 billion new applications by 2028. IBM believes these applications will rely heavily on the kind of live data connections that Confluent provides.
The deal comes after a period of rapid growth for Confluent. In just four years, its total market opportunity doubled from $50 billion to $100 billion. The company has also shown strong financial performance, reporting a 19% increase in revenue for the quarter ended September 30, 2025. This followed even higher gains of 20% and 25% in the preceding quarters. Confluent CFO Rohan Sivaram credited this success to the growing momentum of their data streaming platform.
Discussions regarding the sale reportedly began during Confluent’s most recent financial quarter. Confluent CEO Jay Kreps stated that the merger will help organizations navigate an increasingly complex tech landscape by unlocking the full potential of their data. Both companies expect to close the transaction by the middle of 2026, pending regulatory approvals.
