Overview
- IBM will pay $31 per share in cash for Confluent, valuing the company at about $11 billion on an enterprise basis, with both boards approving and funding coming from cash on hand.
- Confluent’s largest shareholders, representing roughly 62% of voting power, have agreed to support the transaction, and a filing discloses a $453.6 million breakup fee.
- Closing is expected by mid-2026, contingent on a Confluent shareholder vote and regulatory clearance.
- IBM says adding Confluent’s Apache Kafka–based streaming platform will create a “smart data” foundation to move, process and govern real-time data for AI and hybrid-cloud uses.
- IBM expects the deal to be accretive to adjusted EBITDA in the first full year post-close and to add to free cash flow in year two, as Confluent shares jumped about 29% on the announcement.