The $2.3 billion deal is expected to close in the second quarter of 2024.
IBM continues to invest in artificial intelligence and hybrid cloud, and on December 18 it announced a definitive agreement with Software AG to acquire StreamSets and webMethods, two integrated platform-as-a-service enterprise technology platforms. The transaction is expected to close in the second quarter of 2024, with a cash value of $2.3 billion.
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What are iPaaS platform 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 high-volume data.
WebMethods is an integration and API management platform available on-premises and in the cloud. It supports B2B integration, managed file transfer and API gateway to manage, monitor and monetize APIs.
Software AG refers to these platforms collectively as its super iPaaS business. IBM noted that these iPaaS platforms are growing, profitable, and have good recurring revenue profiles.
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 said in a press release that it plans to add StreamSets’ data ingestion capabilities to IBM’s artificial intelligence and data platform Watsonx. IBM anticipates that WebMethods integration and API management tools will be integrated into IBM hybrid multi-cloud environment offerings.
“…StreamSets and webMethods will help clients unlock the full potential of their applications and data,” said Rob Thomas, senior vice president and chief commercial officer, IBM Software, in a press release. “This powerful combination helps drive innovation, Also prepare the enterprise for artificial intelligence, no matter where the applications or data reside.”
IBM’s business relationship with Software AG exceeds 20 years. Private equity firm SilverLake acquired a majority stake in Software AG in June 2023. Software AG has owned webMethods since 2007. Software AG acquired the independent company StreamSets in 2022 to help Software AG enter the cloud data integration market.
IBM said StreamSets and webMethods will benefit from their global scale. IBM has been adding artificial intelligence products and capabilities to its Watsonx platform throughout 2023.
See: More on IBM’s data analytics processor Watson (TechRepublic)
“IBM is the ideal home for webMethods and StreamSets, which are core to our Super iPaaS vision,” Software AG CEO Sanjay Brahmawar said in a press release. “Combined with IBM’s global scale and focus on hybrid cloud and artificial intelligence, we employees will have great opportunities to grow while helping businesses around the world get the most out of their applications and data.”
“We believe that no company is more iconic or better suited to continue investing in and growing these great platforms than IBM,” said Christian Lucas, Chairman of the Supervisory Board of Software AG and Managing Partner of Silver Lake.
The acquisition is expected to close pending typical regulatory approvals and closing conditions.
The deal could give business leaders already using products from IBM or Software AG more options for data integration software.
