IBM is in advanced talks to acquire data-infrastructure company Confluent for about $11 billion, the Wall Street Journal reported on Sunday, in a move aimed at boosting Big Blue's ability to capture growing demand for cloud services.
The deal for Confluent, an open-source platform used to process massive streams of real-time data - from bank transactions to website clicks - could be announced as early as Monday, the newspaper reported, citing unnamed sources.
Reuters could not immediately verify the WSJ report. Both companies did not immediately respond to a request for comment outside normal business hours.
In October, Reuters reported that Confluent is weighing a potential sale and has tapped an investment bank to manage the process after drawing interest from prospective buyers.
Confluent holds a market capitalisation of about $8.09 billion, as per LSEG-compiled data, while New York-based IBM is valued at roughly $287.84 billion.
Investors grew cautious after IBM reported slower growth in its core cloud software business in October, raising concerns about the company's ability to maintain momentum. Analysts said IBM will need stronger software performance to keep overall growth on track.
IBM's acquisition strategy remains a key focus for meeting investors' expectations. Last year, the company bought HashiCorp
in a $6.4 billion deal, expanding its cloud-based offerings to capture rising demand fueled by artificial intelligence.
Under Chief Executive Arvind Krishna, IBM has sharpened its focus on software, aiming to capitalise on increased spending on cloud services.
The interest in Confluent highlights a surge in demand for data infrastructure companies, fueled by the corporate race to develop generative artificial intelligence. In May, Salesforce agreed to acquire software maker Informatica for about $8 billion to bolster its AI capabilities.
Shares of Mountain View, California-based Confluent closed lower at $23.14 on Friday. - Reuters
