IBM to acquire Software AG enterprise tech business for €2bn

Acquisition of enterprise technology platforms from Software AG demonstrates IBM's focus on strategic M&A to boost AI and hybrid cloud offerings

IBM says it has entered into an agreement with leading enterprise integration and technology company Software AG to purchase its StreamSets and webMethods enterprise technology platforms in a cash deal worth €2.13bn (US$2.33bn).

The companies say StreamSets will add data ingestion capabilities to watsonx, IBM's AI and data platform, while webMethods will provide IBM’s clients and partners additional integration and API management tools for their hybrid multi-cloud environments.

“Together with IBM's watsonx AI and data platform, as well as its application modernisation, data fabric and IT automation products, StreamSets and webMethods will help clients unlock the full potential of their applications and data,” said Rob Thomas, Senior Vice President, Software and IBM’s Chief Commercial Officer. “This powerful combination helps drive innovation while preparing businesses for AI, no matter where applications or data reside. 

“Today's news will give IBM clients and partners one of the most modern and comprehensive application and data integration platforms in the industry.”

Majority owned by Silver Lake, Software AG has about 5,000 employees across more than 70 countries and annual group revenue of more than €950m (US$1.04bn). Its technology creates the digital backbone that integrates applications, devices, data and clouds; empowers streamlined processes; and connects sensors, devices and machines.

The core offerings include:

StreamSets - a cloud-native DataOps and data ingestion platform which allows enterprises to achieve consistent access and delivery of data across a wide spectrum of data sources and types. StreamSets also facilitates the design of smart data pipelines and the ingestion of real-time and batch data. 

webMethods - an integration and API management platform. The integration platform, deployed both on-prem and in the cloud, offers B2B integration, managed file transfer and provides a modern API gateway to manage, monitor, and monetise APIs.

Helping enterprises everywhere get the most out of their applications and data

As organisations continue to accelerate their digital transformations, application and data integration solutions are critical elements for application modernisation and effectively deploying AI across the enterprise. StreamSets and webMethods are among the technology leaders in application integration, API management and data integration. IDC predicts the worldwide integration software market will exceed US$18bn in 2027 at a compound annual growth rate of 16.1%.

The pending acquisition follows a more than 20-year relationship between IBM and Software AG, with both StreamSets and webMethods expected to drive synergy with IBM's current portfolio, including watsonx, Red Hat, the company's IT automation products, as well as IBM Consulting.

“IBM is the ideal home for webMethods and StreamSets, the products at the heart of our Super iPaaS vision,” said Sanjay Brahmawar, Chief Executive Officer 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.”

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