FRANKFURT, Dec 18 (Reuters) – IBM (IBM.N) has announced its plan to acquire Software AG’s (SOWGn.DE) enterprise integration platforms for €2.13 billion ($2.33 billion), a strategic move to strengthen its artificial intelligence and hybrid cloud offerings.
IBM will utilize available cash on hand to purchase Software AG’s StreamSets and webMethods platforms, integral components of Software AG’s innovative “Super Ipaas” business, introduced in October. These platforms play a crucial role in providing services such as application integration, application programming interface (API) management, and data integration.
Software AG, majority-owned by private equity firm Silver Lake, currently holds a 93.3% stake in the company following a takeover pursuit spanning several months. The takeover, valued at €2.6 billion ($2.84 billion), positioned Silver Lake as a significant shareholder in the German software company.
Christian Lucas, Chairman of the supervisory board of Software AG, expressed enthusiasm about the collaboration, stating, “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.”
The completion of the transaction is contingent on regulatory approvals and is anticipated to finalize in the second quarter of 2024.
Concurrently, Silver Lake has unveiled its delisting offer for Software AG at €32 ($34.96) per share, marking the expected next step following its takeover earlier this year.
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