Software AG is selling webMethods and StreamSets – its Super iPaaS business – to IBM for €2.13 billion. The sale is subject to customary closing adjustments, including regulatory approvals. The acquisition is expected to be completed in the second quarter of 2024. Super iPaaS is an AI-enabled integration platform, bringing together APIs, application, data, B2B, and events integration capability. Software AG says it enables innovation and drives agility, productivity and governance across the modern hybrid enterprise.
In October, Software AG launched– the ‘Super iPaas’ as a new category of integration platform to help enterprises manage technology infrastructure. Software AG suggested the new category was needed to meet the changing needs of large, modern businesses. Analysts suggests the acquisition is a continuation of IBM’s focus, investment and leadership in hybrid cloud and AI.
Validation of strategy
Sanjay Brahmawar, Software AG CEO, said: “This transaction is a major validation of our strategy. It is recognition of the products at the heart of our Super iPaaS vision. Given IBM’s global scale and focus on hybrid cloud and AI, our people have a fantastic opportunity to develop the Super iPaaS proposition with them. The brilliant people remaining with the company will continue innovating for the benefit of customers, employees and all other stakeholders.”
Brahmawar added, “Both Software AG and IBM are committed to delivering the best products and services available to their customers. Furthermore, to continuing to contribute to their success.”
Dinesh Nirmal, Senior Vice President, Products, IBM Software, said, “As enterprises continue to accelerate their digital transformations. Application and data integration solutions are critical elements for application modernisation and effectively deploying AI across the enterprise. Combined with IBM’s watsonx AI and data platform, and its application modernisation, data fabric and IT automation products, StreamSets and webMethods will help clients unlock the full potential of their applications and data. This helps drive innovation while preparing businesses for AI, no matter where applications or data reside.”
Christian Lucas, Chairman of the Supervisory Board of Software AG and Managing Partner of Silver Lake, “The Software AG team has done exceptionally good work in bringing its integration business to the cloud. Setting it on a compelling path toward its Super iPaaS vision. Silver Lake is proud to have helped the team identify and enable the next chapter for this business with IBM. We remain fully committed to supporting the Software AG team in progressing the company’s strategy.”
WebMethods enhancements
In March this year, Software AG launched a new ChatGPT API Connector for its webMethods integration platform. webMethods supports application integration, business process integration and B2B partner integration The company says it will simplify the process for developers to find and deploy APIs and integration tools or capabilities. Earlier in the year, the company updated its webMethods platform to make APIs more accessible and quicker to deploy. With this, the company aims to help customers become more efficient in their API strategies. With many enterprises feeling the effects of the digital skills shortage Software AG was looking to facilitate collaboration and automation.
Enterprise Times: What this means for business.
This is a really surprising announcement from Software AG. Until very recently, the company had placed the ‘Super iPaaS solution as core to the company’s future strategy. Software AG saw the solution as the direction of technology. With technology increasingly becoming more fragmented and complex, the need for superior ‘middleware’ has become vital.
The company believed enterprises needed to become more connected with internal business units, the supply chain, suppliers and customers. Software AG believed they had no choice in this matter. Enterprises irrespective of size, sector or industry, had to meet the complexity that comes along with this need for integration.
WebMethods offered new ways for customers to automate connected enterprises through its platform for APIs, integration and microservices. The application enabled developers to add integration capabilities into their software. As a result, companies just had to simplify and automate the key business processes to become a connected enterprise.
It was only eighteen months ago, that Software AG acquired Streamset, a DataOps platform for todayt’s modern data integration. The purchase was seen as a smart move, since Streamset’s solutions complemented Software AG’s own eco-system. This followed a major transformation programme in the company with a shift to subscription and SaaS. So, what’s next for Software AG? The company says it will continue focus on driving innovation and growth to benefit its customers, employees and other stakeholders. It will be interesting to see the new direction of Software AG without these core and integral solutions.
The influence of Silver Lake in this diverstment is obvious Silver Lake acquired Software AG in September and has now managed to recoup a significant sum as it looks to bring renewed focus to Software AG. Considering it acquired a majority stake in the company for only €2.4 billion, this deals seems to have recouped much of the value.
