IBM Acquires Confluent in $11 Billion Deal for Enterprise AI Data Platform

Details

• IBM has agreed to acquire Confluent, a leading data streaming platform, for $31 per share, giving Confluent an enterprise value of $11 billion.
• The transaction, approved by both companies’ boards, will see Confluent CEO Jay Kreps continue to lead, with closing expected by mid-2026 pending regulatory review.
• Confluent’s platform, built on Apache Kafka, is central to enabling real-time data streaming and governance for enterprise-scale AI and hybrid cloud applications.
• The acquisition aligns with IBM’s focus on hybrid cloud and AI, expanding on previous moves like its Red Hat buyout and capturing growth from Confluent’s total addressable market doubling to $100 billion in four years.
• With over 6,500 clients, including 40% of the Fortune 500, Confluent boosts IBM’s ability to serve data-intensive enterprises, offering deep integrations with all major cloud services and key AI partners.

Impact

IBM’s purchase of Confluent marks a major step in consolidating control over real-time data infrastructure essential for AI-driven businesses. This strengthens IBM’s competitive stance in hybrid cloud and AI against players like Databricks and Palantir. As enterprises prioritize real-time data to power a new generation of applications, the deal positions IBM to better meet surging market demand.