Microsoft is on target to acquire a coding platform that has become very popular with software coders and developers around the world. The tech giant is in the process of buying GitHub for a reported 7.5 billion dollars. At last check, GitHub was currently valued at almost $2 billion.
Once combined, the two companies will help to empower developers to be able to achieve more of their goals at each stage during the development process, bring the developer services and tools of Microsoft to an entirely new audience and speed up enterprise use of the coding platform.
The Purchase Agreement
Microsoft has a long-standing of being a company that focuses on developers first. By deciding to join forces with a coding platform such as GitHub, the tech giant is planning to strengthen its commitment to providing developers freedom, innovation, and openness.
Microsoft is well aware of the responsibility it is undertaking for having community responsibility under the agreement, and the company promises to empower all developers to innovate and build some of the most pressing challenges in the world.
Under the agreement terms, the purchase of GitHub for $7.5 billion will be completed via Microsoft stock. The purchase is also subject to a completion of a regulatory review and customary closing conditions. If everything goes as planned, the acquisition is expected to be completed by the end of the year.
Upcoming Changes For GitHub?
Also under the agreement, the coding platform will also retain a developer first community for developers and will continue to operate independently. By retaining this independence, GitHub will also be able to provide an open source platform for developers in any industry.
This means that developers will still be able to use programming languages, operating systems and tools of their choice for all of their projects. These developers will also be able to still deploy their code for any operating system, device or cloud.
Global Digital Transformation
In today’s global economy, there are more software companies now than ever before. This places software developers at the forefront of the digital transformation that has been taking place since the dawn of the 21st century.
These companies and developers are driving business functions and processes across departments and organizations. This covers areas from HR (Human Resources) to IT to customer service and marketing. The choices that developers make will have an impact on growth and value creation in every industry.
GitHub has become the home for today’s developers, and it is considered to be the top global destination for software innovation and open source projects. The coding platform currently hosts an extensive network of software developers in almost every country in the world. These developers represent over 1 million companies in industries including:
- Financial Services
Microsoft highly expects that the financials of GitHub will be reported as part of the segment known as the Intelligent Cloud. The acquisition will be accrued to the 2020 fiscal year operating income. This will be done on a non-GAAP basis.