IBM Catches Market Unawares with $11-B Confluent Acquisition

IBM shares recently rose 0.5%, adding to the company’s 41% year-to-date stock gain, after the consulting and technology provider announced plans to acquire real-time data-streaming platform Confluent, Aparajita Chatterjee reported for TheStreet.

Confluent provides tools that allow companies to move and process data in real time across internal systems, cloud environments and applications. (Photo: Confluent AI Facebook) 

More notably, Confluent’s shares surged 29% following the announcement — notching a solid gain from September, when the stock hit a low of $15.64, though still below its previous high of $29.90.

IBM said it will acquire all issued and outstanding common shares of Confluent for $31 per share, valuing the company at approximately $11 billion.

The deal underscores the growing importance of data streaming in the rapidly expanding generative artificial intelligence sector.

IBM said the acquisition will enable it to deliver a purpose-built and innovative AI data platform for its customers.

Confluent, founded by the original creators of Apache Kafka, provides tools that allow companies to move and process data in real time across internal systems, cloud environments, and applications.