Core Viewpoint - IBM is acquiring Confluent for $11 billion to enhance its cloud-computing capabilities in response to increasing demand driven by artificial intelligence [1][2]. Group 1: Acquisition Details - The acquisition deal values Confluent at $11 billion, with an offer price of $31 per share, representing a 50% premium over Confluent's closing price of $20.73 on October 7 [1]. - IBM plans to fund the acquisition using cash on hand, and the transaction is expected to close by mid-2026 [3]. Group 2: Strategic Rationale - IBM is focusing on mergers and acquisitions to strengthen its cloud and software products, which are high-growth and high-margin areas, as customers upgrade their digital infrastructure for complex AI applications [2]. - The acquisition follows IBM's previous purchase of cloud firm HashiCorp for $6.4 billion in April last year, indicating a strategic emphasis on inorganic growth under CEO Arvind Krishna [2]. Group 3: Market Reaction - Following the announcement of the acquisition, IBM's shares fell in premarket trading [1].