IBM To Boost Watsonx With $2B Purchase Of Two Software AG Platforms

In the deal, IBM gets StreamSets and webMethods, two platforms from Germany-based Software AG.

IBM plans to spend 2.13 billion euros ($2.33 billion) on two platforms owned by Software AG in an effort to boost the data ingestion and integration management capabilities of Watsonx, IBM’s generative artificial intelligence offering.

In the deal, Armonk, N.Y.-based IBM gets StreamSets and webMethods, two platforms from Germany-based Software AG, according to a Monday statement from both vendors.

The acquisition should also boost the capabilities of IBM subsidiary Red Hat plus IBM’s consulting, data fabric and automation divisions. IBM will use cash for the deal, which is slated to close in the second quarter of 2024, according to the IBM statement.

IBM Buys Software AG Platforms

CRN has reached out to IBM and Software AG for comment.

IBM has 55,000 worldwide channel partners and 12,000 North American partners, according to CRN’s 2023 Channel Chiefs.

Software AG has 400 partners worldwide and 100 in North America, according to CRN’s 2023 Channel Chiefs.

In a recent interview with Paola Doebel, senior vice president of North America for Downers Grove, Ill.-based IBM partner Ensono, No. 103 on CRN’s 2023 Solution Provider 500, Doebel told CRN that IBM’s AI capabilities have helped her company with accelerating application modernization and code editing in DevOps scenarios for customers.

“We're both investing in those capabilities in-house as a service provider, and then enabling it to back our services to our clients or providing it as a service to our clients,” Doebel said.

Private equity firm Silver Lake acquired a majority stake in Software AG in June, according to Reuters.

The deal valued Software AG at about 2.6 billion euros ($2.84 billion), and it is in the process of delisting Software AG for 32 euros ($34.96) a share, according to Reuters.

Deal Should Improve IBM’s Watsonx

The acquisition of StreamSets will add data ingestion abilities to Watsonx while webMethods will bring new integration and API management tools for hybrid multi-cloud environments. The platforms should help customers get more out of applications and data, no matter where they reside in the IT estate.

StreamSets and webMethods serve more than 1,500 clients worldwide, according to the IBM statement.

IBM cited data in the statement that puts the worldwide integration software market at more than $18 billion in 2027, with a compound annual growth rate of 16.1 percent.

Software AG bought StreamSets in February 20222 for more than $580 million and bought webMethods in 2007 for about $546 million, accordingto a regulatory filing. Software AG in October launched a “Super iPaaS” product that includes both platforms.

The vendor billed Super iPaaS as being able to make companies more agile with a flow of data for making decisions and quickly putting them into action as well as reduce risk by providing end-to-end visibility across transactions.