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IBM to spend £1.8bn on enterprise integration platforms by Software AG

Written by Mon 18 Dec 2023

IBM said it will buy enterprise software platforms developed by Software AG for £1.8 billion ($2.3 billion) to enhance its artificial intelligence (AI) and cloud offerings.

The German multinational software corporation, Software AG, agreed to sell its webMethods and StreamSets platforms to IBM. These units form Software AG’s Super iPaaS business that launched in October 2023.

CEO of Software AG, Sanjay Brahmawar, said the transaction is a major validation of the company’s strategy.

“Given IBM’s global scale and focus on hybrid cloud and AI, our people have a fantastic opportunity to develop the Super iPaaS proposition with them,” said Brahmawar.

Super iPaaS is an integration platform enhanced with AI capabilities. It is designed to seamlessly connect application programming interfaces, applications, data, B2B, and events. 

The platform intends to facilitate improved integration capabilities to promote innovation, agility, productivity, and governance within the modern hybrid enterprise.

Senior Vice President of Products at IBM Software, Dinesh Nirmal, emphasised the pivotal role of application and data integration solutions in driving application modernisation. 

“StreamSets and webMethods will help clients unlock the full potential of their applications and data. This helps drive innovation while preparing businesses for AI, no matter where applications or data reside,” said Nirmal.

The transaction’s completion is contingent on standard closing conditions, including regulatory approval. The deal is anticipated to be finalised in Q2 2024.

“The Software AG team has done exceptionally good work in bringing its integration business to the cloud and setting it on a compelling path toward its Super iPaaS vision,” said Christian Lucas, Chairman of the Supervisory Board at Software AG and Managing Partner at Silver Lake.

Private equity firm, Silver Lake, currently holds a 93.3% majority stake in Software AG. This majority ownership resulted from a takeover pursuit lasting several months, with the entire business valued at €2.6 billion (£2.2 billion or $2.84 billion) in the deal.

Last week, Meta and IBM launched an AI Alliance to advance innovation and open science in AI. The AI Alliance comprises 50 leading organisations across industry, startup, academia, research, and government. 

Members of the Alliance include AMD, CERN, Dell Technologies, Intel, Oracle, NASA, Sony and more.

Image Credit: Reuters

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Written by Mon 18 Dec 2023

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