IBM to buy two software AG data platforms for $2.3 bn to strengthen AI

By Olivia Solon and Agatha Cantrill International Business Machines Corp. has agreed to buy data-integration platforms StreamSets and WebMethods from Software AG for €2.13 billion ($2.3 billion) in cash in an effort to strengthen its AI and cloud capabilities.

The deal is expected to complete in the second quarter of 2024, subject to regulatory approvals, Armonk, New York-based IBM said in a statement on Monday.

The investment comes as demand increases for cloud services tailored to AI applications, IBM said. StreamSets allows companies to ingest vast amounts of data for training AI systems, while WebMethods helps companies better manage application planning interfaces — software gateways that allow different systems to interact with each other.