IBM might acquire data infrastructure firm Confluent for $11B
What's the story
IBM is said to be in advanced talks to acquire data infrastructure company Confluent for around $11 billion, The Wall Street Journal reported. The deal, if finalized, would be one of IBM's largest acquisitions in recent years. Confluent, which is currently valued at some $8 billion, specializes in managing the data that powers artificial intelligence (AI) development.
Market reaction
Confluent's market response
Following the news of potential acquisition talks, Confluent's shares jumped 20% as of 11:50am Singapore time. The trading volume also surpassed the monthly average. The possible acquisition comes amid a surge in computing infrastructure deals, fueled by the need for tools that allow companies to manage and transfer data more efficiently for AI applications.
Acquisition trends
Recent trends in computing infrastructure acquisitions
The potential acquisition of Confluent by IBM is part of a larger trend in the computing infrastructure space. Companies are increasingly looking for ways to manage and move data more efficiently, especially for AI applications. This has led to several high-profile deals, including Salesforce's $8 billion acquisition of Informatica in May and IBM's own $6.4 billion purchase of HashiCorp in February.