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1h ago

IBM to Acquire Confluent for $11 Billion in All-Cash Deal

The all-cash deal still needs shareholder approval plus regulatory clearance, with closing targeted for mid-2026.

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FILE - The logo for IBM appears above a trading post on the floor of the New York Stock Exchange, March 18, 2019. (AP Photo/Richard Drew, File)
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Overview

  • IBM will pay $31 per share in cash for Confluent, implying an enterprise value of about $11 billion.
  • Both boards approved the transaction, and Confluent shareholders controlling roughly 62% of voting power have agreed to support it.
  • Company filings reference a $453.6 million termination fee, and the parties expect completion by mid-2026 pending approvals.
  • IBM plans to fund the purchase with cash on hand and projects accretion to adjusted earnings in the first full year and a boost to free cash flow in year two.
  • Confluent’s Apache Kafka–based streaming platform, used by more than 6,500 customers, underpins IBM’s push to deliver a “smart data platform” for generative and agentic AI, as Confluent shares jumped about 29% and IBM’s stock moved modestly.