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IBM Makes €2.69 Billion Play to Boost AI and Hybrid Cloud with Software AG Acquisition

Published: 1.8.2024

IBM announced a definitive agreement to acquire StreamSets and webMethods, the crown jewels of Software AG's integration platform-as-a-service (iPaaS) business, for €2.13 billion. 

StreamSets and webMethods, collectively known as Software AG's Super iPaaS, are market-leading platforms that enable seamless application and data integration across hybrid cloud environments. This capability is becoming increasingly crucial for businesses undergoing digital transformations, as they grapple with the complexities of managing data and applications across on-premises and cloud infrastructure. 

This acquisition represents a critical step in IBM’s hybrid cloud and AI ambitions. StreamSets and webMethods will seamlessly integrate with IBM's existing AI and cloud offerings, including IBM Cloud Pak for Integration and IBM Watson, creating a comprehensive and powerful platform for enterprises seeking to leverage AI across their hybrid cloud environments. 

Analysts predict the acquisition will significantly strengthen IBM's position in the competitive iPaaS market, where it currently trails behind Salesforce, MuleSoft, and Microsoft. By combining its expertise with the established capabilities of StreamSets and webMethods, IBM is poised to offer a compelling value proposition to businesses seeking a robust and versatile iPaaS solution. 

Sanjay Brahmawar, CEO of Software AG, stated that "IBM is the ideal home for webMethods and StreamSets," highlighting the synergy between the two companies' visions and technological strengths. He also expressed confidence that the combined efforts will "help enterprises everywhere get the most out of their applications and data." 

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