Microsoft to acquire GitHub for $7.5B to solidify developer ties

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Microsoft has announced it is to acquire the code-sharing site Github.

GitHub's website offers a way for software developers to store and share code with each other, making it easy for people to work on projects together and build on each other's work.

It is used by employees at many big companies, including Microsoft.

Microsoft says that it expects to complete the acquisition by the end of the year.

We are committed to being stewards of the GitHub community, which will retain its developer-first ethos, operate independently and remain an open platform. The platform hosts a growing network of developers in almost every country representing more than 1.5 million companies across healthcare, manufacturing, technology, financial services, retail and more.

The web-based repository of open-source software projects first launched in 2008 and has over 28 million users.

GitHub raised $250 million in 2015 and was last valued at $2 billion.

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"Developers will be at the center of solving the world's most pressing challenges", Nadella said in a blog post Monday.

Meanwhile, GitHub CEO and co-founder Chris Wanstrath will be a technical fellow at Microsoft.

Simple: In this age of competing cloud and mobile platforms, many of which it does not control, Microsoft needs to get its superior software development tools and services in front of more developers.

Profits from GitHub will be reported under Microsoft's Intelligent Cloud division in financial reports. However, one person close to the deal said that GitHub wanted to be bought by Microsoft instead of going public, partly because it was impressed by its CEO, Satya Nadella.

The deal reflects the company's ongoing pivot to open source software and seeks to further broaden its large and growing development community, Moody's analyst Richard Lane said.

This latest acquisition is one of the largest in Microsoft history, coming just a few years after their $26.2 billion all-cash acquisition of LinkedIn. Secondly, he added that Microsoft will accelerate enterprise developers' use of GitHub, with "direct sales and partner channels and access to Microsoft's global cloud infrastructure".

Microsoft shares rose almost 1 percent to hit a record high of $101.79.

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