IBM · 10-Q · 2026Q2 · Full report
Confluent Acquisition
INTERNATIONAL BUSINESS MACHINES CORP · 2026-07-23 · Importance 71 · Surprise 60 · No source text
On March 17, 2026, IBM completed its acquisition of Confluent for total consideration of $11,602 million, including $11,268 million paid for common stock and $269 million for Confluent equity awards. Confluent contributed data-flow and communication capabilities intended to help enterprises deploy generative and agentic AI across environments, applications and APIs. The transaction created $7,238 million of goodwill, including $7,149 million assigned to the Software segment, and was integrated into Software. On July 22, 2026, IBM signed an agreement to acquire another business, expected to close in the second half of 2026 subject to regulatory approval and customary conditions, with integration into Infrastructure.
Key facts
- IBM completed the acquisition of Confluent in the first quarter of 2026. source
- Net cash used in investing activities in the first six months of 2026: $11.0 billion, which includes IBM's investment in the acquisition of Confluent source
- Total purchase price for Confluent: $11,602 million. source
- Total consideration for the Confluent acquisition reported as $11,602 million, which equals cash consideration plus fair value of stock-based compensation attributable to pre-acquisition services. source
- Cash paid for outstanding Confluent common stock: $11,268 million. source
- Identified intangible assets from Confluent: Client relationships $2,122 million; Completed technology $1,590 million; total assets acquired $13,647 million; total liabilities assumed $2,045 million. source
- Confluent shareholders received a per-share cash amount resulting in a total equity value of approximately $11.3 billion. source
- Goodwill assigned to Software segment from Confluent: $7,149 million. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | positive | realized | +9.0% | Identified intangible assets from Confluent: Client relationships $2,122 million; Completed technology $1,590 million; total assets… |
| assets | positive | realized | +7.6% | Total purchase price for Confluent: $11,602 million. |
| cash | negative | realized | -7.4% | Cash paid for outstanding Confluent common stock: $11,268 million. |
| liability | negative | realized | -1.3% | Identified intangible assets from Confluent: Client relationships $2,122 million; Completed technology $1,590 million; total assets… |
| assets | positive | realized | — | IBM completed the acquisition of Confluent in the first quarter of 2026. |
| cash | negative | realized | — | Net cash used in investing activities in the first six months of 2026: $11.0 billion, which includes IBM's investment in the acquisition… |