Microsoft announced it is set to acquire GitHub for $7.5 billion Monday morning, according to Microsoft. The deal is expected to be complete by the end of 2018 after customary closing conditions and regulatory reviews are finished.
GitHub is a software development platform with more than 28 million users. It will "retain its developer-first ethos" while operating separately from its new parent company, according to the announcement. GitHub will provide an open platform for developers across sectors to run code on any cloud or device they wish, outside of the Microsoft ecosystem.
The software platform company's financials will appear in Microsoft Intelligent Cloud Segment after closing.
Microsoft is taking its "developers-first" mindset to another level with its GitHub purchase. The deal highlights Microsoft's goal to house the largest group of developers in the world.
Developers are the cornerstone of digital transformation, enabling more software-infused approaches to traditional business practices. Companies that can boast a strong team of developers are more likely to outpace their counterparts.
Any company acquired by a technical giant like Microsoft will reap the benefits of its global scale. The same was true for Microsoft's 2016 acquisition of LinkedIn. There were similarities in the announcements, including the hiring site's ability to function as a "distinct brand" independent of Microsoft.
The LinkedIn deal allowed Microsoft to have stake in everyone who has a profile on LinkedIn. Last year the company announced that the LinkedIn database would be integrated in Office products.
Both acquisitions are indicators of Microsoft ensuring it has first-hand access to talent in software development. The company already has a community of engineers that add to open source copy daily which is accessible "from cloud to client operating systems, programming languages" and other tools. The community offers developers resources to better their governance and experience while creating their open source platform.