IBM Boosts AI And Cloud Portfolio With €2.13B Buyout: Here's Details
Portfolio Pulse from Lekha Gupta
IBM has agreed to acquire StreamSets and webMethods from Software AG for €2.13 billion (~$2.3 billion) in cash to enhance its AI and hybrid cloud capabilities. The acquisition, funded by IBM's cash on hand, is expected to complete in Q2 FY24. IBM's cash and marketable securities stood at $11 billion at the end of Q3. The deal aims to integrate these platforms with IBM's watsonx AI and data platform, driving innovation and preparing businesses for AI.
December 18, 2023 | 10:47 am
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POSITIVE IMPACT
IBM's acquisition of StreamSets and webMethods for €2.13 billion aims to strengthen its AI and cloud portfolio, funded by its substantial cash reserves. The deal is expected to close in Q2 FY24 and could enhance IBM's competitive edge in the AI and cloud markets.
The acquisition is significant for IBM as it directly relates to its strategic focus on AI and hybrid cloud, areas that are critical for future growth. The use of existing cash reserves indicates a strong financial position, and the deal is likely to be viewed positively by investors, potentially leading to a short-term uptick in IBM's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Software AG has entered into a definitive agreement with IBM for the sale of StreamSets and webMethods for €2.13 billion. The transaction is expected to provide a significant cash inflow for Software AG.
Software AG's sale of StreamSets and webMethods to IBM represents a substantial deal for the company, providing a significant cash inflow. This could be seen as a positive development for Software AG, potentially leading to a short-term positive impact on its stock price, although the company is not US-listed and thus may not be directly influenced by US market sentiments.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80