IBM To Buy Software AG's Enterprise Integration Platforms For $2.3 Billion

An anonymous reader quotes a report from Reuters: IBM said on Monday that it would buy Software AG's enterprise integration platforms for 2.13 billion euros ($2.33 billion) to bolster its artificial intelligence and hybrid cloud offerings. IBM will acquire Software AG's StreamSets and webMethods platforms with available cash on hand, it said. The two units formed Software AG's so-called "Super Ipaas" business, which was launched in October.

The platforms provide application integration, application programming interface (API) management, and data integration among other uses. Software AG is majority owned by private equity firm Silver Lake, which currently owns 93.3% of shares in the German software company, following a takeover pursuit spanning several months. That deal valued the whole business at 2.6 billion euros ($2.84 billion). The transaction is subject to regulatory approvals and is expected to be completed in the second quarter of 2024. "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.

Wonder if the EU like a US/India takeover...

[Anonymous Coward]

Wonder how the EU will handle yet another European business being taken up by US/India. I'm having my doubts this will clear regulatory hurdles, but IBM has the best lawyers on the planet, so if anyone can do it, they can.

Well, if you use Software AG's products

[93 Escort Wagon]

You should probably start working on a transition strategy now.

Whatever for?

[Anonymous Coward]

For a 54 year old company achieving only $20M net income on $1B revenue this seems like an "avoid."

Re: Whatever for?

[Junta]

I think IBM is fond of "fixer upper" acquisitions. They see a product that they think could be adequately successful, if it had IBM brand and/or their leadership (they have a lot of hubris around their business leadership).

So they see a product they think is a good product, with not great but serviceable financials, and they pounce. Particularly if it's a market segment they feel they are being left behind. Usually they view the obvious choices as too expensive, and like to find what they think to be a co

Re:

[theendlessnow]

What they want is the customer base. I've never seen IBM "fix up" any acquisition. They only "tear down", sometimes very quickly.

They are a "machine". They operate like a "machine". They "love you", like a "machine".

Re: Whatever for?

[Junta]

Often, their "fixing" is them protecting how they themselves failed on the target acquisition. They think they are fixing, but ultimately just making it a failure. This doesn't change their intent, just that their hubris is often misplaced.

In this example, it seems like too much to pay for the current level of customer. If so, then IBM is hoping they can make it take off, rather than buying it for the current lackluster business results.

A key example was when they bought soft layer. That was, by no mean

Been using webMethods at work for about 2-3 years

[PortHaven]

Not impressed in the least. I mean, how can you have an API Management product that didn't even provide a count of consumers registered for a given API. And did not even apply an alphabetic sort on the list. SMH

What sucks is that this acquisition will probably mean we are stuck with webMethods for a few more years.

*sighs*