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December 18, 2023

IBM pays €2bn for Software AG’s enterprise integration platforms

Big Blue pays big bucks for two integration packages that will help boost its hybrid cloud offering.

By Matthew Gooding

IBM plans to bolster its AI and data offering with the purchase of Software AG’s enterprise integration platform. It will pay more than €2bn for two of the German software vendor’s product suites.

IBM is paying €2bn to Software AG for integration products that will bolster its watsonx service. (Photo by Robert Way/Shutterstock)

Big Blue announced this morning that it has agreed on a deal to buy StreamSets and webMethods, Software AG’s Super iPaaS, or integration platform-as-a-service, enterprise technology platforms. The €2.13bn all-cash deal is expected to go through in the second quarter of next year.

IBM’s €2bn Software AG deal sees it go big on integration

The deal will see IBM acquire StreamSets, a cloud-native DataOps and data ingestion platform that allows enterprises to achieve consistent access and delivery of data across a wide spectrum of data sources and types. StreamSets also facilitates the design of smart data pipelines and the ingestion of real-time and batch data, an IBM statement said.

Also included in the purchase is webMethods, an integration and API management platform. The integration platform, deployed both on-prem and in the cloud, offers integration and managed file transfer, as well as provides a modern API gateway to manage, monitor and monetise APIs.

Software AG, which is majority-owned by private equity fund Silverlake, says its iPaaS platform is “growing, profitable and has a significant recurring revenue profile”, and between them, the two services have more than 1,500 clients around the world.

“We believe that there is no business more iconic or better suited than IBM to continue investing in and growing these great platforms,” said Christian Lucas, chair of the supervisory board of Software AG and managing partner of Silver Lake. “The opportunity to bring the StreamSets and webMethods teams together with IBM to innovate in building the future of hybrid cloud and next-generation AI solutions for the enterprise is uniquely compelling.”

Why IBM needs more integration options

IBM said StreamSets will add data ingestion capabilities to its watsonx AI platform, while webMethods will give clients and partners additional integration and API management tools for their hybrid multi-cloud environments.

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The company is seeking to bolster its credentials in the hybrid cloud market, where being able to integrate different cloud and on-premise services is crucial. Additionally, the growing popularity of artificial intelligence large language models and related tools means more businesses may need efficient ways to manage the API access they give their tEAMS

Rob Thomas, senior vice-president for software, and chief commercial officer, at IBM said: “StreamSets and webMethods will help clients unlock the full potential of their applications and data.”

He added: “This powerful combination helps drive innovation while preparing businesses for AI, no matter where applications or data reside. Today’s news will give IBM clients and partners one of the most modern and comprehensive application and data integration platforms in the industry.”

Read more: AI helps reduce data breach impact, says IBM

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