IBM to Buy Confluent for $11B

Acquirer: International Business Machines Corporation (NYSE: IBM)

• Global technology company that operates through four main segments: Software (hybrid cloud and AI platforms), Consulting (strategy and operations services), Infrastructure (servers and storage solutions), and Financing (equipment financing for clients)
• Partners with major tech companies like Amazon Web Services, Microsoft, and SAP to deliver integrated solutions and services worldwide
• Founded in 1911 and headquartered in Armonk, NY

Acquirer Financial Statistics

• Mkt Cap: $289 billion
• EV: $340.7 billion
• LTM Revenue: $65.4 billion
• LTM EBITDA: $17.8 billion
• LTM EV / Revenue: 5.2x
• LTM EV / EBITDA: 19.1x

Acquirer Advisor(s)

Centerview Partners, Barclays and JPMorgan

Target Company: Confluent, Inc. (NASDAQ: CFLT)

• Data streaming platform company that offers both cloud-based (Confluent Cloud) and self-managed (Confluent Platform) solutions, along with services like Apache Flink, connectors, and data governance tools that enable real-time data streaming across applications and systems
• Serves various industries including banking, retail, manufacturing, and technology, providing professional services, education, and certification programs alongside its streaming platforms
• Founded in 2014 and headquartered in Mountain View, CA

Target Financial Statistics

• Mkt Cap: $10.5 billion
• EV: $9.6 billion
• LTM Revenue: $1.1 billion
• LTM EBITDA: ($361.1) million
• LTM EV / Revenue: 8.7x
• LTM EV / EBITDA: NA

Target Advisor(s)

Morgan Stanley

Price/Consideration

$11 billion/Cash

Deal Details

Announcement Date

• December 8, 2025

Rationale

• The acquisition aims to provide an end-to-end smart data platform for enterprises by combining IBM’s AI and hybrid cloud offerings with Confluent’s real-time data streaming capabilities, enabling better deployment of generative and agentic AI for business applications across diverse IT environments
• Confluent collaborates with leading technology companies such as Anthropic, AWS, GCP, Microsoft, and Snowflake, a strategy aligned with IBM’s approach of fostering deep industry partnerships and operating within an open technology ecosystem
• Confluent’s total addressable market has doubled to $100 billion in 2025, driven by the need for real-time, clean, and connected data for AI and enterprise applications
• Combining Confluent’s real-time data streaming platform with IBM’s AI infrastructure and automation offerings is projected to enhance revenue growth and operational efficiencies
• The deal is expected to be accretive to IBM’s adjusted EBITDA within the first full year and free cash flow by the second year post-close
• “We are excited by the potential to join IBM and to accelerate our strategy with IBM's go-to-market expertise, global scale and extensive portfolio. I look forward to the future we will build together as Confluent become