IBM to buy StreamSets and webMethods from Software AG for $2.3B

IBM boosts cloud portfolio

IBM is boosting its cloud technology portfoilio by buying Software AG’s IPaaS tools. The move is part of IBM’s focus on hybrid cloud, a plan they’ve been building on with some major buys, including Red Hat for $34 billion in 2018 and Apptio for $4.6 billion in June.

The purchase “is reflective of organizations continuing to look into differentiating their positioning around the overall AI and data value chain,” Moogimane said.

The move highlights the ongoing consolidation in the tech industry, where large players are acquiring specialized platforms to diversify their offerings and strengthen their market position, said Ankit Prakash, the founder of Sprout24, a contextual data platform for SaaS products.

“It’s a clear signal that the future of technology lies in the convergence of data, AI, and cloud services, a nexus that is rapidly becoming the backbone of digital transformation strategies across industries,” he added.

Software AG, a key figure in the software sector, is primarily owned by Silver Lake, a major private equity firm. Silver Lake secured a 93.3% stake in the German software company following a takeover campaign earlier this year. This acquisition valued Software AG at about € 2.6 billion  ($2.84 billion).

Silver Lake took control of Software AG by initially buying a 63% majority stake for $2.4 billion. They later increased their ownership to over 85% in September. Silver Lake has further consolidated its hold on Software AG by acquiring 93% of the company, with plans to take it private by delisting it from the stock market.