IBM Acquires Software AG’s StreamSets and webMethods Platforms

IBM announced that it has entered into a definitive agreement with Software AG, a company majority owned by Silver Lake, to purchase StreamSets and webMethods, Software AG's Super iPaaS (integration platform-as-a-service) enterprise technology platforms, for €2.13 billion in cash.

As organizations continue to accelerate their digital transformations, application and data integration solutions are critical elements for application modernization and effectively deploying AI across the enterprise. StreamSets and webMethods are among the platforms used for application integration, API management, and data integration.  The acquisition of StreamSets and webMethods is indicative of IBM’s focus on strategic mergers & acquisitions to create value and bolster its AI and hybrid cloud offerings. StreamSets will add data ingestion capabilities to watsonx, IBM's AI and data platform, while webMethods will give clients and partners additional integration and API management tools for their hybrid multi-cloud environments.

The core offerings include:

• StreamSets - a cloud-native DataOps and data ingestion platform that allows enterprises to achieve consistent access and delivery of data across a wide spectrum of data sources and types. StreamSets also facilitates the design of smart data pipelines and the ingestion of real-time and batch data.

• webMethods - an integration and API management platform. The integration platform, deployed both on-prem and in the cloud, offers B2B integration, managed file transfer, and provides a modern API gateway to manage, monitor, and monetize APIs.

Software AG's Super iPaaS platform is growing, profitable and has a significant recurring revenue profile. StreamSets and webMethods serve more than 1,500 clients across the globe.

The pending acquisition follows a more than 20-year relationship between IBM and Software AG, with both StreamSets and webMethods expected to drive synergy with IBM's current portfolio, including watsonx, Red Hat, the company's IT automation products, as well as IBM Consulting. Additionally, StreamSets and webMethods are expected to benefit from IBM's global scale, operating in more than 175 countries.

StreamSets and webMethods will be acquired with available cash on hand. The consummation of the transaction is subject to customary closing conditions, including regulatory approvals, and is expected to be completed in the second quarter of 2024.