International Business Machines Corp (NYSE:IBM) is reportedly in advanced discussions to acquire data-infrastructure company Confluent Inc (NASDAQ:CFLT) for approximately $11 billion.
IBM’s Business Restructuring Around AI
IBM is close to finalizing a deal to buy Confluent, a company that provides technology for managing real-time data streams used in large artificial intelligence models, reported The Wall Street Journal on Sunday.
If completed, the acquisition would mark IBM's most significant recent deal as it continues restructuring its business around AI. The company had already strengthened its cloud and AI footprint last year by agreeing to buy cloud-software provider HashiCorp for $6.4 billion.
The demand for Confluent’s services has surged due to the AI boom, with companies in various sectors such as retail, technology, and financial services seeking its capabilities.
IBM's AI Momentum Amid Rising Tech M&A
The potential acquisition of Confluent comes amid IBM’s strong performance in the AI sector. In the third quarter of 2025, the company reported a 9% year-over-year increase in total revenue, driven by robust AI-related demand.
IBM’s stock also saw a significant rise in November 2025 after the company announced several major technological advancements, including the unveiling of its most advanced quantum processor, the Quantum Nighthawk. This move is expected to further enhance IBM’s AI capabilities.
This report also comes amid a host of M&A activities in the technology sector this year, highlighted by Salesforce's (NYSE:CRM) $8 billion Informatica deal in May and Palo Alto Networks' (NASDAQ:PANW) $25 billion agreement to acquire CyberArk.
Benzinga's Edge Rankings place IBM in the 87th percentile for quality and the 71st percentile for growth, reflecting its strong performance in both areas. Check the detailed report here.
Price Action: On a year-to-date basis, IBM stock climbed 13.18% as per data from Benzinga Pro. On Friday, it edged 0.02% lower to close at $307.94. On the other hand, Confluence stock declined 5.13% year-to-date.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
