The $2.3 billion deal is expected to close in the second quarter of 2024.
IBM continues to invest in AI and hybrid cloud with the Dec. 18 announcement of a definitive agreement with Software AG to acquire StreamSets and webMethods, two integration platform-as-a-service enterprise technology platforms. The deal is expected to close in Q2 2024 for $2.3 billion in cash.
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What are the iPaaS platforms StreamSets and webMethods?
StreamSets is a DataOps and data ingestion application. It is cloud native and helps organizations design smart data pipelines and ingest real-time and batch data.
WebMethods is an integration and API management platform offered both on premises and on the cloud. It enables B2B integration, managed file transfer and an API gateway to manage, monitor and monetize APIs.
Software AG refers to these platforms together as the Super iPaaS business. IBM notes that these iPaaS platforms are growing and profitable and have a good recurring revenue profile.
What are IBM’s plans for StreamSets and webMethods?
Overall, StreamSets and webMethods will enhance watsonx, Red Hat, IBM’s IT automation products and IBM Consulting.
IBM plans to add StreamSets’ data ingestion capabilities to watsonx, IBM’s AI and data platform, the company said in a press release. WebMethods’ integration and API management tools will be integrated into IBM hybrid multi-cloud environment offerings, IBM expects.
“… StreamSets and webMethods will help clients unlock the full potential of their applications and data,” said Rob Thomas, senior vice president, software and chief commercial officer, IBM, in a press release. “This powerful combination helps drive innovation while preparing businesses for AI, no matter where applications or data reside.”
IBM has had a business relationship with Software AG for more than 20 years. SilverLake, a private equity firm, acquired a majority stake in Software AG in June 2023. Software AG has owned webMethods since 2007. Software AG acquired independent company StreamSets in 2022 to help Software AG enter the cloud data integration market segment.
IBM said StreamSets and webMethods will benefit from its global scale. IBM has been adding AI products and capabilities to its watsonx platform throughout 2023.
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“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, in the press release. “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.”
“We believe that there is no business more iconic or better suited than IBM to continue investing in and growing these great platforms,” said Christian Lucas, chairman of the supervisory board of Software AG and managing partner of Silver Lake.
The acquisition is expected to conclude pending typical regulatory approvals and closing conditions.
This deal may give more data integration software options to business leaders already using IBM or Software AG products.