IBM To Purchase StreamSets and webMethods Platforms from Software AG

By Brian K. Neal

IBM has officially signed a definitive agreement with Software AG, a company primarily owned by Silver Lake, to acquire StreamSets and webMethods, two key enterprise technology platforms under Software AG’s Super iPaaS (integration platform-as-a-service). The acquisition, valued at €2.13 billion in cash, reflects IBM’s strategic focus on AI and hybrid cloud solutions.

In the rapidly evolving landscape of digital transformations, robust application and data integration solutions are pivotal for effective application modernization and the deployment of AI across enterprises. StreamSets and webMethods are recognized leaders in application integration, API management, and data integration. According to IDC, the global integration software market is predicted to surpass $18.0 billion by 2027, with a compound annual growth rate (CAGR) of 16.1%.

This acquisition aligns with IBM’s deep commitment and investment in AI and hybrid cloud technologies. StreamSets will enhance data ingestion capabilities within watsonx, IBM’s AI and data platform, while webMethods will provide clients and partners with additional tools for integration and API management in hybrid multi-cloud environments.

The core offerings include:

• StreamSets: A cloud-native DataOps and data ingestion platform that ensures consistent access and delivery of data across diverse sources and types. It enables the design of intelligent data pipelines for real-time and batch data ingestion.
• webMethods: An integration and API management platform available both on-premises and in the cloud. It offers B2B integration, managed file transfer, and a modern API gateway for managing, monitoring, and monetizing APIs.

Software AG’s Super iPaaS platform is not only growing and profitable but also boasts a substantial recurring revenue profile. Serving over 1,500 clients globally, StreamSets and webMethods are poised to complement IBM’s existing portfolio, including watsonx, Red Hat, IT automation products, and IBM Consulting.

The acquisition, expected to be completed in the second quarter of 2024, follows a longstanding partnership of more than 20 years between IBM and Software AG. The integration of StreamSets and webMethods is anticipated to synergize with IBM’s global scale, operating in over 175 countries, and enhance its offerings in application and data integration platforms. This move reflects a shared vision to drive innovation and prepare businesses for AI, regardless of the location of applications or data.

Sanjay Brahmawar, CEO of Software AG, expressed confidence in IBM as the ideal home for webMethods and StreamSets, emphasizing the potential for innovation in hybrid cloud and next-generation AI solutions. Christian Lucas, Chairman of the Supervisory Board of Software AG and Managing Partner of Silver Lake, echoed the sentiment, highlighting the unique opportunity to collaborate with IBM in shaping the future of enterprise solutions.