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December 18, 2023

IBM Set to Acquire Data Integration Platforms webMethods and StreamSets for $2.3B

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Applications and data integration solutions are going to play an increasingly vital role as organizations accelerate their digital transformations through AI deployment and application modernization. 

The International Data Corporation predicts that the global integration market will exceed $18 billion by 2027 at a staggering computing annual growth rate (CAGR) of over 16 percent. Companies that offer application integration, API management, and data integration are set to grow in demand. 

IBM, one of the largest IT companies in the world, announced today that they have entered into an agreement with Software AG to purchase webMethods and StreamSets, which are Software AG’s Super iPaaS (integration platform-as-a-service) enterprise technology platforms for $2.3 billion. 

Software AG is a German-based enterprise software company owned by Silver Lake. It is the second-largest software vendor in Germany and has enterprise customers in over 70 countries. Early this year, Software AG announced its acquisition of StreamSets citing the acquisition as a natural fit for Software AG’s existing Digital Business Platform. WebMethods was acquired by Software AG back in 2007

StreamSets is an end-to-end integration platform for smart data pipelines needed to power DataOps across multi-cloud architectures. It enables organizations to have consistent access and delivery of data across different data sources and types. This includes ingestion of batch and real-time data. 

webMethods is an API management and integration platform focused on business process and application integration. It offers managed file transfer, B2B integrations, and a modern API gateway to monetize, manage, and monitor APIs. 

(Ye-Liew/Shutterstock)

StreamSets and webMethods have more than 1,500 clients around the world. The acquisition of StreamSets will add data ingestion capabilities to watsonx – IBM’s AI and data platform, while webMethods will allow clients and partners to use additional integration and API management tools for their hybrid multi-cloud environments. 

Rob Thomas, SVP, Software and Chief Commercial Officer, IBM, shared his enthusiasm about the acquisition, “Together with IBM’s watsonx AI and data platform, as well as its application modernization, 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.”

Many organizations are gravitating towards a hybrid approach to computing having cloud and in-house infrastructure to get the benefits of both systems. This is where data integration systems come in handy as they offer the ability to manage and process data that is housed in different applications including cloud and on-prem. This is exactly where IBM plans to leverage the capabilities of webMethods and StreamSets. 

According to Sanjay Brahmawar, Chief Executive Officer of Software AG, IBM is the ideal home for SteamSets and webMethods. Both companies align with IBM’s Super iPaaS vision, and the global scale of IBM will only enhance the capabilities of these platforms. 

(Andrey-Suslov/Shutterstock)

Brahmawar says that he is excited about the opportunity for StreamSets and webMethods to develop while working with IBM and help enterprises around the globe get the most out of their data and applications. 

Christian Lucas, Chairman of the Supervisory Board of Software AG and Managing Partner of Silver Lake, also shared his views on the acquisition by saying “We believe that there is no business more iconic or better suited than IBM to continue investing in and growing these great platforms”. 

IBM has been focusing on building its AI portfolio and capabilities. It recently announced its commitment to train two million learners in AI by the end of 2026. The acquisition of StreamSets and webMethods will expand its AI capabilities The acquisition deal is set to happen with the available cash on hand. The deal is subject to the customary closing conditions, including regulatory approvals, and is expected to be completed by the second quarter of 2024. 

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