IBM Boosts AI And Cloud Portfolio With €2.13B Buyout: Here's Details

International Business Machines Corp (NYSE:IBM) penned a definitive deal with Software AG (OTC:SWDAF) to acquire StreamSets and webMethods for €2.13 billion (~$2.3 billion) in cash.

StreamSets and webMethods are Software AG's Super iPaaS (integration platform-as-a-service) enterprise technology platforms.

The buyout is projected to enhance IBM's focus and investment in AI and hybrid cloud by adding data ingestion capabilities to watsonx (IBM's AI and data platform).

IBM is acquiring the companies with available cash on hand, and the deal is projected to be completed in Q2 FY24 upon fulfillment of customary closing conditions.

As of the end of Q3, IBM had cash and marketable securities of $11 billion. 

"Together with IBM's watsonx AI and data platform, as well as its application modernization, data fabric and IT automation products, StreamSets and webMethods will help clients unlock the full potential of their applications and data. This powerful combination helps drive innovation while preparing businesses for AI, no matter where applications or data reside," said Rob Thomas, Senior Vice President, Software and Chief Commercial Officer. 

Also Read: IBM CEO Says All AI Regulations, Even President Biden's Latest Executive Order, Are Going To Be 'Imperfect'

Earlier this month, IBM launched 'IBM Quantum Heron,' the first in a new series of utility-scale quantum processors, and expanded its IBM Quantum Development Roadmap to 2033 with new targets to significantly advance the quality of gate operations.

Price Action: IBM shares closed lower by 0.42% at $162.23 on Friday.

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