IBM to acquire Confluent for $11B, boosting hybrid cloud and real-time data

IBM has agreed to acquire Confluent, the data streaming company built around Apache Kafka, in an $11 billion transaction that reinforces IBM’s push into hybrid cloud and real-time analytics. Confluent, founded by engineers behind Kafka, provides a managed streaming platform used by enterprises to move and process data in real time across applications and cloud environments. The deal aggregates Confluent’s streaming capabilities with IBM’s existing cloud and AI-oriented product set.

The acquisition is framed as a strategic move to strengthen IBM’s portfolio for customers that require continuous data flows for analytics, machine learning and modern application architectures. IBM has been investing heavily in hybrid cloud and AI infrastructure since its purchase of Red Hat in 2019; adding Confluent extends IBM’s capabilities at the data layer, enabling customers to ingest, route and analyze event streams with lower latency and tighter integration into enterprise clouds.

Key commercial benefits cited by analysts include improved end-to-end data pipelines for enterprise AI use cases, easier multicloud connectivity for streaming data, and tighter integration with IBM’s middleware and services. Confluent’s platform is widely used to power event-driven systems — from fraud detection to personalization engines — and its managed service model aligns with IBM’s focus on enterprise-grade, subscription-driven revenue.

The deal is subject to customary regulatory approvals and closing conditions. IBM and Confluent are expected to outline integration plans, including how Confluent’s cloud offerings will operate alongside IBM’s public and private cloud solutions. Customers and partners will be watching for commitments on product roadmaps, data portability and support as the integration progresses.

Financial terms put the transaction value at roughly $11 billion, making it one of IBM’s larger acquisitions since Red Hat. For Confluent, the acquisition offers deeper go-to-market resources and an enterprise sales engine that could accelerate adoption among large corporate customers. Market observers expect scrutiny from antitrust regulators given the scale and strategic importance of cloud and data services, but anticipate that the pairing could meaningfully enhance IBM’s position in real-time data and AI infrastructure.