IBM to acquire Software AG’s StreamSets and webMethods platforms for €2.13 bn

IBM on Monday announced the signing of a definitive agreement to acquire StreamSets and webMethods technology platforms from Software AG, for €2.13 billion in cash.

Software AG is a company majority owned by Silver Lake, a US-based private equity firm focused on investments in technology, technology-enabled and related industries.

StreamSets and webMethods are Software AG's Super iPaaS (integration platform-as-a-service) enterprise technology platforms for data integration solutions that are critical for application modernisation and effective deployment of AI across the enterprise.

StreamSets and webMethods are among the technology leaders in application integration, API management, and data integration. IDC predicts the worldwide integration software market will exceed $18 billion in 2027, growing at a compound annual growth rate (CAGR) of 16.1 per cent.

The acquisition of 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, says an IBM press release.

StreamSets is a cloud-native DataOps and data ingestion platform which 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 is an integration and API management 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.

IBM and Software AG have a more than 20-year relationship with both StreamSets and webMethods are expected to drive synergy with IBM's current portfolio, including watsonx, Red Hat, the company's IT automation products, as well as IBM Consulting. StreamSets and webMethods will benefit from IBM's global operations.

IBM plans to acquire StreamSets and webMethods with own cash and the closing of the transaction is subject to customary closing conditions, including regulatory approvals, and is expected to be completed in the second quarter of 2024.