UCSC Alumnus-Founded Company Confluent Acquired by IBM

Confluent, the pioneer of data streaming and the company behind the widely adopted Apache Kafka, announced on December 8, 2025 that it has signed a definitive agreement to be acquired by IBM in an all-cash deal for $31.00 per share. The acquisition, valued at an enterprise value of $11 billion, represents a major win for the "data in motion" category and a landmark achievement rooted in the local Santa Cruz tech community.

Founded in part by UC-Santa Cruz alumnus, Jay Kreps, one of the original co-creators of Apache Kafka, this strategic acquisition is set to significantly accelerate IBM’s hybrid cloud and AI strategy by establishing an intelligent, always-on core for moving trusted data and insights in real time.

Confluent, which enables companies to manage and act on data instantly across complex hybrid environments, has strong ties to the Santa Cruz tech ecosystem. The company presented its groundbreaking technology at the Santa Cruz Works New Tech event in 2021 and recently reconnected with the local community through a webinar with Santa Cruz Works in 2025. The company has grown from an idea to a vital part of global enterprise infrastructure since its IPO in 2021, and its journey has been closely linked to the local ecosystem.

A Vision for Data and AI

Confluent’s CEO Jay Kreps, in a company-wide letter, emphasized that the acquisition will amplify Confluent's mission, not change it. "Data is at the heart of what companies need to do to harness AI, modernize their operations, and build the next generation of applications; and Confluent is at the heart of what companies need to harness their data," Kreps wrote.

IBM sees Confluent as a cornerstone for building a Smart Data Platform for Enterprise Generative AI. By combining Confluent's ability to provide continuous, event-driven intelligence with IBM's hybrid cloud and AI strategy, the companies aim to accelerate the global shift toward real-time, AI-powered operations. IBM has a history of championing open-source technologies, having previously acquired Red Hat and HashiCorp, a shared value that was a key factor in the Confluent team's decision.

The transaction is expected to close by the middle of 2026, subject to customary closing conditions and regulatory approvals. Post-close, Confluent will operate as a distinct brand and business unit within IBM.