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International Business Machines said Monday that it would buy two divisions from German company
SoftwareAG
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 up 0.2% in premarket trading on Monday, having risen 15% this year through to Friday’s close. It has lagged other major technology companies such as
Microsoft
which is up 55% this year so far and Google-parent
Alphabet
which has risen 50%.
Software AG was up 1.5% in local trading in Germany. Software AG is majority owned by U.S. private-equity firm Silver Lake.
Write to Adam Clark at adam.clark@barrons.com
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