Microsoft is paying $7.5 billion in an all-stock deal for the popular coder hangout GitHub.
The software giant announced the transaction on Monday and said it expects the deal to close by the end of 2018.
GitHub, founded in 2008, is a platform where software developers can go to host and review each other’s code.
Microsoft is paying $7.5 billion for the popular coder hangout GitHub. It marks CEO Satya Nadella’s second largest deal since the firm acquired LinkedIn for $26.2 billion two years ago
The San Francisco startup has grown sharply since then and now counts 27 million software developers around the world who use its platform to share code and build businesses.
It’s free to use GitHub for open-source projects, but some developers and businesses pay a monthly fee to access private code repositories and other services.
GitHub may have also fielded competing acquisition offers from other players like Google, according to Axios.
This is Microsoft CEO Satya Nadella’s second largest acquisition after the company bought professional social media network LinkedIn for $26.2 billion two years ago.
Nadella said the GitHub acquisition demonstrates Microsoft’s ‘commitment to developer freedom, openness and innovation’.
It’s also expected to help strengthen Microsoft’s reach in open source software and cloud computing.
It’s free to use GitHub for open-source projects, but some developers and businesses pay a monthly fee to access private code repositories and other services
Many expect Microsoft to integrate GitHub into its Azure cloud service, which already hosts the code for many software products.
‘The era of intelligent cloud and intelligent edge is upon us,’ Nadella wrote in a blog post.
‘Computing is becoming embedded in the world, with every part of our daily life and work and every aspect of our society and economy being transformed by digital technology’
‘Developers are the builders of this new era, writing the world’s code. And GitHub is their home’, Nadella added.
Microsoft used to operate a GitHub competitor, called Codeplex, before it killed that product off in December.
GitHub has become hugely popular, attracting big name customers like Apple, Amazon and Google, among others.
Microsoft CEO Satya Nadella said the GitHub acquisition demonstrates Microsoft’s ‘commitment to developer freedom, openness and innovation’
News of the deal sent shares of Microsoft higher by 0.4% to $101.24 on Monday afternoon. It should help build Microsoft’s presence in the enterprise open source software market
The deal should help build Microsoft’s presence in the enterprise open source software market.
‘We are committed to being stewards of the GitHub community, which will retain its developer-first ethos, operate independently and remain an open platform,’ Nadella continued.
‘We will always listen to developer feedback and invest in both fundamentals and new capabilities’.
As part of the deal, Microsoft vice president Nat Friedman will be appointed CEO of GitHub, while current GitHub CEO and founder Chris Wanstrath will become a Microsoft technical fellow, the company said.
News of the deal sent shares of Microsoft higher by 0.4% to $101.24 on Monday afternoon.