International Business Machines
said Monday that it would buy two divisions from German company Software AG for €2.13 billion ($2.33 billion). It’s an acquisition designed to beef up the data capabilities of IBM’s artificial-intelligence platform.
IBM is buying
Software’s
StreamSets and webMethods businesses, which provide platforms for organizing data and integrating it across different applications.
IBM is hoping that a stronger data offering will be key to attracting customers to its watsonx.ai software platform. IBM’s AI strategy is to help customers create applications of their own, which requires the ability to safely and efficiently put data into an AI model.
“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,” said Rob Thomas, IBM’s chief commercial officer, in a statement.
IBM is making the acquisition with available cash, and it is expected to complete in the second quarter of 2024.
IBM shares were down 0.1% at $162.03 in early Monday trading, having risen 15% this year through to Friday’s close. It has lagged shares of other major technology companies such as
Microsoft
which are up 55% so far this year, and those of Google-parent
Alphabet,
which have risen 50%.
Shares of Software AG, which is majority-owned by U.S. private-equity firm Silver Lake, were up 1.5% in local trading in Germany.
Write to Adam Clark at [email protected]
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