IBM To Acquire Confluent For $31/shr In $11 Bln All Cash Deal

(RTTNews) - IBM Corp. (IBM) and Confluent, Inc. (CFLT), announced Monday they have entered into a definitive agreement under which IBM will acquire all of the issued and outstanding common shares of Confluent for $31 per share, representing an enterprise value of $11 billion. Confluent will be acquired with available cash on hand.

Confluent provides a leading open-source enterprise data streaming platform that connects, processes and governs reusable and reliable data and events in real time, foundational for the deployment of AI.

The acquisition will see Confluent's real-time data and event streaming capabilities combine with IBM's AI infrastructure software and Automation offerings.

The acquisition of Confluent represents further commitment to IBM's 25-year history of open-source innovation and investment, building on the acquisitions of open-source leaders like Red Hat and HashiCorp.

The acquisition of Confluent is also expected to drive substantial product synergies across IBM's portfolio, including AI products and services, Automation, Data and Consulting, and accelerate revenue growth by leveraging IBM's go-to-market reach.

The acquisition is also expected to result in significant operational efficiencies through IBM's scale and best-in-class productivity actions.

IBM anticipates that the transaction will be accretive to adjusted EBITDA within the first full year and free cash flow in year two, post close.

The board of directors of IBM and the board of directors and independent special committee of Confluent have each approved the transaction. The acquisition is subject to approval by Confluent shareholders, regulatory approvals and other customary closing conditions. The transaction is expected to close by the middle of 2026.

Confluent's largest shareholders and investors, who collectively hold approximately 62% of the voting power of Confluent's outstanding common stock, entered into a voting agreement with IBM pursuant to which each has agreed to vote all of their common shares in favor of the transaction and against any alternative transactions.