In a move that dramatically reshapes the enterprise data marketplace, IBM announced its acquisition of Confluent for $11 billion in an all-cash transaction on December 8, 2025. The deal, announced jointly from Armonk, NY and Mountain View, CA, offers $31 per share for all outstanding Confluent common stock—representing a 34% premium over Confluent’s pre-announcement market value of $8.09 billion. Both companies’ boards have already approved the transaction.
IBM’s $11 billion Confluent acquisition reshapes enterprise data, offering a 34% premium in the tech industry’s latest blockbuster deal.
The acquisition strategically positions IBM to build an end-to-end data platform for enterprise generative AI by integrating Confluent’s real-time data streaming capabilities with IBM’s existing portfolio. You’ll see significant enhancements to IBM’s AI products, automation tools, and consulting services once the integration is complete.
Confluent’s platform, based on open-source Apache Kafka, will serve as a neutral data layer across hybrid cloud environments.
IBM plans to fund the purchase entirely with available cash on hand, which stood at $14.9 billion before the announcement. Financial projections indicate the acquisition will be accretive to adjusted EBITDA in the first full year after closing, with free cash flow accretion expected by year two.
The combination targets Confluent’s estimated $100 billion market potential by leveraging IBM’s global reach and scale. The deal strengthens IBM’s position in a market where data is projected to more than double by 2028.
This represents IBM’s second-largest acquisition in company history, following its $34 billion Red Hat purchase and more recent $6.5 billion HashiCorp deal. The transaction complements these previous investments by adding critical data-in-motion capabilities essential for AI agents and applications.
The acquisition is expected to close by mid-2026, pending Confluent shareholder approval and regulatory clearances. Legal guidance for the transaction has been provided by Cooley LLP, which has been advising Confluent on corporate matters since November 2020. With 62% of Confluent shares already committed through board member approvals, the shareholder vote is widely considered a formality.
Post-acquisition, Confluent will operate as a distinct brand within IBM, with talent retention measures designed to preserve innovation.
The combined offering will enable customers to connect, process, and govern real-time data events across their entire technology landscape. The integration will leverage message-oriented middleware capabilities to facilitate asynchronous communication between distributed systems and services.
