IBM to Buy Confluent for $11 Billion to Expand AI, Data Platform

IBM said on Monday (Dec. 8) it plans to acquire Confluent for about $11 billion in cash for the real-time data streaming company in one of its largest acquisitions in the recent years. The transaction is expected to close by mid-2026, pending shareholder and regulatory approval. The company said Confluent will continue operating as a standalone business unit inside IBM after the deal closes.

Confluent provides software that moves data between systems in real time. Its technology is rooted in Apache Kafka, the open-source framework developed by Confluent’s founders and widely used in enterprise applications. Bloomberg reported that Confluent has become a key provider of streaming data infrastructure for industries that rely on continuous data flows to run modern operations.

IBM said the acquisition will expand its data and artificial intelligence (AI) platform, which spans hybrid-cloud services through Red Hat’s acquisition, its AI software portfolio and its consulting practice. The company said Confluent will add real-time data capabilities that support the applications customers run across their environments. IBM did not disclose integration plans beyond stating that Confluent will maintain its brand and continue serving existing customers.

Confluent’s Position

Confluent is known for helping organizations move information the moment it is created, allowing operational systems to receive updates immediately instead of relying on batch transfers or end-of-day synchronization. Bloomberg reported that Confluent’s technology is used by enterprises that need continuous visibility into transactions, inventory, logistics or customer activity. The company offers deployment options across cloud and on-premises environments and has positioned its platform as foundational for applications that depend on up-to-date information.

Confluent went public in 2021 and has grown into a significant provider of data streaming services used in large enterprise systems. It is now one of the leading commercial vendors in this segment, supported by a broad customer base across industries.

IBM’s AI and Cloud Strategy

The Confluent acquisition follows a series of moves by IBM to expand its cloud and AI capabilities. The company acquired Red Hat in 2019 to support hybrid-cloud deployments and has since built a portfolio of AI software and model services that integrate with customer workflows. Bloomberg reported that IBM views real-time data handling as a growing requirement for enterprise systems that support automation and AI.

As reported by PYMNTS, IBM recently launched IBM Digital Asset Haven, a platform built with wallet-infrastructure provider Dfns that allows financial institutions, governments and corporations to manage digital assets across blockchains with integrated security and compliance controls. IBM said the platform is designed to support custody, transaction management and multichain operations.