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Software Development

How Will IBM’s Acquisition Of Software AG Help Businesses?

By TD NewsDesk

TD NewsDesk

Updated on Wed, Dec 20, 2023

Overall Rating
In today’s digital-first world, technology and software are two things that no business can function without.

From back-office functions to cross-platforms integrations, they help make processes much easier to handle and foster efficiency, productivity, creativity and innovation.

However, as the market fills up with a wide range of software products, businesses need to be able to unify diverse software solutions to streamline their workflow. This is why developers look to create interoperable programs. Yet, one avenue that remains critical is application and data integration solutions, whose market valuation is predicted to cross $18 billion by 2027, according to IDC.

Keeping this in mind, IBM has a new announcement that’s set to benefit its enterprise customers. What did IBM say? Let’s explore!

What Did IBM Announce?

  • Through a press release, IBM said it has entered a definitive agreement with Software AG, to acquire its StreamSets and webMethods platforms for 2.13 billion euros (around $2.33 billion), with available cash in hand.

  • Software AG is majority-owned by Silver Lake, a private equity firm, which owns 93.3% in the German software company.

  • The acquisition aims to bolster IBM’s push in its artificial intelligence and hybrid cloud offerings.

  • StreamSets is a cloud native DataOps and data ingestion and data delivery platform that will add data ingestion capabilities to watsonx, IBM's AI and data platform.

  • webMethods is an integration and API management platform, where “the integration platform, deployed both on-prem and in the cloud, offers B2B integration, managed file transfer, and provides a modern API gateway to manage, monitor, and monetize APIs.” as per IBM’s press release.

  • Furthermore, the two platforms are among the technology leaders in application integration, API management and data integration and will benefit majorly from IBM's global reach of over 175 countries.

  • The acquisition follows a 20+ year relationship between IBM and Software AG and will boost IBM products like watsonx, Red Hat, the company's IT automation products, as well as IBM Consulting.

  • While the deal is set to be completed by the second quarter of 2024, it remains subject to regulatory approvals.

  • Following the move, Silver Lake announced its delisting offer for Software AG at €32 ($34.96).

What Did Stakeholders Say?

  • Rob Thomas, Senior Vice President, Software and Chief Commercial Officer, IBM, said, “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.”

  • [Contd.] “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.”

  • Sanjay Brahmawar, Chief Executive Officer of Software AG, said, “IBM is the ideal home for webMethods and StreamSets, the products at the heart of our Super iPaaS vision … Combined with IBM's global scale and focus on hybrid cloud and AI, our people will have a fantastic opportunity to develop while helping enterprises everywhere get the most out of their applications and data.”

  • Christian Lucas, Chairman of the Supervisory Board of Software AG and Managing Partner of Silver Lake, said, “We believe that there is no business more iconic or better suited than IBM to continue investing in and growing these great platforms … 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.”

  • [Contd.] “We are pleased that our investment in Software AG helped spark that vision, reflecting Silver Lake's commitment to partner with the world's best management teams and technology leaders in driving exceptional value creation for customers, employees and other stakeholders.”

Do you think competing companies should take note of IBM’s acquisition and make similar moves that benefit both entities? Will IBM’s move benefit its enterprise customers involved in data, cloud and AI development?

Let us know in the comments below!

First published on Wed, Dec 20, 2023

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Software Development Data Management API API Management Tools Enterprise Integration IBM Silver Lake Software AG StreamSets webMethods Acquisition Deal

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