IBM buys Confluent for 11 billion in real time data push

IBM has agreed to acquire Confluent in an USD 11 billion deal that signals how crucial real-time data has become for the next wave of enterprise Artificial Intelligence (AI). Announced on December 8, the transaction brings together IBM’s hybrid cloud and automation stack with Confluent’s data streaming platform built on Apache Kafka. For companies racing to build faster applications and AI agents, the merger could reshape how data flows across large tech environments.

A push for connected and trusted data

IDC estimates more than one billion new logical applications by 2028. Many of these apps, along with AI-powered agents, need quick access to accurate data. IBM says the combined company will help businesses link applications, analytics systems, and AI tools more easily across public clouds, private clouds, and on-prem infrastructure.

Arvind Krishna, IBM’s chairman, president, and chief executive officer, said the goal is to “provide the smart data platform for enterprise IT, purpose-built for AI.” He pointed to the challenge of managing information that lives across many technology providers.

Jay Kreps, Confluent’s chief executive officer and co-founder, said the company has spent years helping clients use real-time data. He added that joining IBM will help accelerate that mission through global reach and a broad product stack.

Why Confluent matters

Confluent is built on Apache Kafka, a widely adopted open-source technology that lets organisations move data as streams instead of static files. Its platform includes connectors, stream governance tools, processing engines, tableflow, Confluent Intelligence, and streaming agents. More than 6,500 clients use the platform, including over 40% of Fortune 500 firms.

The company supports several deployment models: Confluent Cloud for managed services, Confluent Platform for self-managed setups, WarpStream as a bring-your-own-cloud option, and Confluent Private Cloud for companies that want a cloud-like experience in their own environments.

IBM believes these offerings fit well with its automation and AI portfolio. The company said the combined capabilities will help customers run clean and connected data pipelines at scale.

Financial and strategic outlook

The USD 11 billion acquisition gives Confluent shareholders USD 31 per share in cash. IBM plans to fund the deal with cash on hand. The company expects the transaction to increase adjusted EBITDA within the first full year and improve free cash flow in the second year after closing.

IBM said the deal continues its long support of open-source innovation. Previous major acquisitions like Red Hat and HashiCorp have shaped its hybrid cloud approach.

The boards of both companies have cleared the transaction. Confluent shareholders with around 62% voting power have agreed to vote in favor. The deal is expected to close by mid-2026, pending regulatory approvals.

What it means for enterprises

For companies upgrading digital operations, this move highlights a shifting trend. Real-time data is becoming a central part of enterprise technology. As AI grows across industries, the need to connect information from many systems is rising quickly.

IBM is betting that combining its AI software with Confluent’s streaming technology will appeal to organizations trying to simplify data flows without creating more complexity. If the strategy works, the deal could shape how businesses build data pipelines for the next generation of AI applications.