IBM said Monday it's buying data streaming platform Confluent in a deal worth $11 billion that will help bolster the technology company's artificial intelligence strategy.

The two companies said they signed a “definitive agreement” for IBM to acquire all of Confluent Inc.'s issued and outstanding common stock for $31 per share in cash, which represents an enterprise value of $11 billion.

Confluent, based in Mountain View, Calif., is an open source data streaming platform that “connects, processes and governs" data and events in real time, the companies said in a joint statement. It specializes in preparing data for AI and keeping it “clean and connected across systems and applications," they said.

The deal means IBM's client companies can deploy artificial intelligence services better and faster “by providing trusted communication and data flow between environments, applications and APIs,” IBM CEO Arvind Krishna said in the statement. “Data is spread across public and private clouds, data centers and countless technology providers."

The transaction is expected to close in mid-2026. It still needs approval from Confluent shareholders as well as clearance from regulators.

Confluent shares, which closed at $23.14 Friday, surged 29% in premarket trading. Shares of IBM ticked down less than 1%.