- Wednesday, October 16, 2024
IBM announced on Monday its plans to acquire two divisions from German company SoftwareAG for €2.13 billion ($2.33 billion). This strategic move aims to enhance the data capabilities of IBM's artificial intelligence (AI) platform.
The acquisition will include Software's StreamSets and webMethods businesses, which provide advanced data organization and integration solutions for various applications.
IBM believes that a more robust data offering will play a crucial role in attracting customers to its WatsonX AI software platform. As part of its AI strategy, IBM aims to empower clients in creating their own applications, which requires the ability to securely and efficiently incorporate data into AI models.
"StreamSets and webMethods, combined with IBM's WatsonX AI and data platform, as well as its application modernization, data fabric, and IT automation products, will enable clients to fully unlock the potential of their applications and data," said Rob Thomas, IBM's Chief Commercial Officer.
The acquisition will be funded using available cash and is expected to be completed by the second quarter of 2024.
Despite lagging behind major technology companies like Microsoft (up 55% this year) and Google-parent Alphabet (up 50%), IBM's shares were up 0.2% in premarket trading on Monday. This represents a 15% increase year-to-date as of Friday's close.
Meanwhile, Software AG experienced a 1.5% surge in local trading in Germany. The majority ownership of Software AG lies with U.S. private-equity firm Silver Lake.
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