IBM entered into a definitive agreement with Software AG, a company majority owned by Silver Lake, to purchase its enterprise technology platform StreamSets and webMethods for 2.13 billion euros in cash.

"Together with IBM's watsonx AI and data platform, as well as its application modernisation, 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, SVP, Software and Chief Commercial Officer, IBM.

IDC predicts the worldwide integration software market will exceed $18.0 billion in 2027 at a compound annual growth rate (CAGR) of 16.1 per cent.

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, said the Arvind Krishna-led company.

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. webMethods is an integration and API management platform.

“Combined with IBM's global scale and focus on hybrid cloud and AI, our people will have a fantastic opportunity to develop while helping enterprises everywhere get the most out of their applications and data,” said Sanjay Brahmawar, Chief Executive Officer of Software AG.

Christian Lucas, Chairman of the Supervisory Board of Software AG and Managing Partner of Silver Lake said that the opportunity to bring the StreamSets and webMethods teams together with IBM to innovate in building the future of hybrid cloud and next-generation AI solutions for the enterprise is “uniquely compelling”.

The acquisition is expected to be completed in the second quarter of 2024.