IBM is in advanced talks to acquire data infrastructure company Confluent for about US$11-billion, The Wall Street Journal reported on Sunday, in a move aimed at boosting Big Blue’s ability to capture growing demand for cloud services.
The deal for Confluent, an open-source platform used to process massive streams of real-time data — from bank transactions to website clicks — could be announced as early as Monday, the newspaper reported, citing unnamed sources.
In October, Reuters reported that Confluent was weighing a potential sale and had tapped an investment bank to manage the process after drawing interest from prospective buyers.
Confluent holds a market capitalization of about $8.1-billion, according to LSEG-compiled data, while New York-based IBM is valued at roughly $287.8-billion.
Investors grew cautious after IBM reported slower growth in its core cloud software business in October, raising concerns about the company’s ability to maintain momentum. Analysts said IBM will need stronger software performance to keep overall growth on track.
IBM’s acquisition strategy remains a key focus for meeting investors’ expectations. Last year, the company bought HashiCorp in a $6.4-billion deal, expanding its cloud-based offerings to capture rising demand fuelled by artificial intelligence.
Corporate race
Under CEO Arvind Krishna, IBM has sharpened its focus on software, aiming to capitalise on increased spending on cloud services.
Read: IBM sets sights on practical quantum computing by 2029
The interest in Confluent highlights a surge in demand for data infrastructure companies, fuelled by the corporate race to develop generative AI. In May, Salesforce agreed to acquire software maker Informatica for about $8-billion to bolster its AI capabilities. — Preetika Parashuraman, Anusha Shah and Mrinmay Dey, (c) 2025 Reuters
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