IBM looks to secure data infrastructure with $11bn bid for Confluent

• Confluent is being acquired by IBM for $11 billion in cash ($31 per share)
• IBM wants to expand its cloud, data, and AI infrastructure offerings
• Confluent’s total addressable market and revenue has risen sharply

IBM has confirmed plans to buy data streaming company Confluent in an $11 billion deal – the equivalent of $31 per share.

The deal sees IBM valuing Confluent around 34% higher than share prices suggested prior to the announcement, and it marks an important step in IBM’s strategy to expand cloud, data, and AI infrastructure offerings.

Confluent in particular specializes in managing large, real-time data streams that are present in AI workflows - as IBM hopes to build a smart data platform for generative and agentic AI.

IBM acquires Confluent for $11 billion

“With the acquisition of Confluent, IBM will provide the smart data platform for enterprise IT, purpose-built for AI,” IBM CEO Arvind Krishna commented.

In a press release, IBM cited IDC data suggesting that more than one billion new logical applications could emerge by 2028. “These applications, as well as AI agents, need access to connected and trusted data – in real time,” the company wrote.

This comes after a period of significant growth for Confluent. Its total addressable market has doubled from $50 billion to $100 billion inn the past four years. In the three months ending September 30, 2025, Confluent reported a 19% year-over-year rise in revenue - this was after a 20% rise the quarter before, and a 25% rise preceding that.

CFO Rohan Sivaram credited the positive figures to “the momentum of [its] data streaming platform.”

Discussions with IBM about a sale of the company were believed to have started during its most recent quarter.

“Since its founding, Confluent has helped organizations unlock the full potential of their data, driving innovation in an increasingly complex IT landscape,” CEO Jay Kreps said in relation to the acquisition deal.

IBM expects to complete the transaction by the middle of 2026.

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