In a major strategic move that reshapes the enterprise AI landscape, IBM announced a definitive agreement to acquire data streaming giant Confluent for $11 billion. The transaction, announced from Armonk, NY and Mountain View, CA on December 8, 2025, will see IBM purchase all outstanding Confluent common shares at $31 per share in cash. IBM plans to fund the acquisition entirely with available cash on hand.
IBM’s strategic acquisition of Confluent reshapes enterprise AI, with an $11 billion all-cash transaction transforming data streaming capabilities.
The boards of both companies have approved the transaction, with approximately 62% of Confluent’s voting power already committed to supporting the deal. A special committee of independent Confluent directors has also given their approval. The acquisition remains subject to shareholder approval and regulatory clearances, with closure expected by mid-2026.
This strategic acquisition positions IBM to create an end-to-end smart data platform for enterprise generative AI. Confluent’s leading open-source data streaming technology, based on Apache Kafka, enables real-time connection, processing, and governance of data across environments. The platform functions as a central nervous system for enterprise AI, supporting deployment of AI agents and applications. Confluent currently serves over 6,500 clients, including more than 40% of the Fortune 500 across major industries.
The deal promises significant synergy opportunities across IBM’s portfolio:
- Enhanced product integration with IBM AI, Automation, and Data offerings
- Accelerated revenue growth through IBM’s global sales reach
- Complementary technology to IBM Red Hat, watsonx, and existing data products
Financially, IBM expects the acquisition to accelerate overall growth, becoming accretive to adjusted EBITDA in the first full year and contributing to free cash flow in the second year post-close. Customers may realize up to 90% cost savings versus self-managed streaming deployments.
Confluent’s technology connects disparate data sources in real time through flexible deployment models: managed cloud, self-managed, or hybrid approaches. This foundation enables continuous event-driven intelligence across business operations. The acquisition exemplifies a strategic vendor selection framework that prioritizes technical expertise, resource capacity, and security protocols. Cooley LLP has been instrumental in this landmark deal, providing legal advisory services to Confluent as they have since November 2020.
Following the acquisition, Confluent will initially operate independently until closing, later functioning as a distinct brand within IBM while maintaining its core mission of accelerating the global shift to real-time, AI-powered business operations.
