IBM to Purchase Software AG's Enterprise Technology for $2.3 billion

On Dec. 18, IBM said it will buy enterprise technology platform Software AG for 2.13 billion euros ($2.33 billion) to bolster its artificial intelligence and hybrid cloud offerings.  It will use its cash reserves to acquire Software AG and StreamSets software and web platforms.

The platform provides data integration between application components, application programming interface (API) management, and other programs. AG Software is a majority-owned Silver Lake private equity firm.

"The opportunity to bring the StreamSets and webMethods teams together with IBM to innovate in building the future of hybrid cloud and next-generation AI solutions for the enterprise is uniquely compelling," Christian Lucas, chairman of the supervisory board of Software AG, said in a statement.

IBM, nicknamed Big Blue, is an American multinational technology corporation headquartered in Armonk, New York and is present in over 175 countries. It specializes in computer hardware, middleware, and software and provides hosting and consulting services in areas ranging from mainframe computers to nanotechnology. It is the largest industrial research organization in the world, with 19 research facilities across a dozen countries, and held the record for most annual U.S. patents generated by a business for 29 consecutive years from 1993 to 2021.

Software AG is a German multinational software corporation that develops enterprise software for business process management, integration, and big data analytics. Founded in 1969, the company is headquartered in Darmstadt, Germany, and has offices worldwide.