FRANKFURT (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 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.
The transaction is subject to regulatory approvals and is expected to be completed in the second quarter of 2024.
Silver Lake simultaneously announced its delisting offer for Software AG at 32 euros ($34.96) per share, the expected next step following its takeover this year.
($1 = 0.9160 euros)
(Reporting by Shivani Tanna in Bengaluru and Emma-Victoria Farr in Frankfurt; Editing by Rashmi Aich and Ed Osmond)
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