June 4 (UPI) -- Microsoft on Monday announced it will acquire web-based hosting service GitHub for $7 5 billion in stock.
The deal gives the software giant control of a popular service where developers share and collaborate on projects, documentation and coding -- and whose clients include Apple, Amazon and Google. Microsoft is GitHub's top contributor, with over 1,000 employees actively engaged in working.
Experts say the acquisition could persuade developers to create new applications for Microsoft's cloud-computing business. Under CEO Satya Nadella, Microsoft has invested rapidly in open-source technology, a GitHub specialty.
Microsoft is also using the Git version control system for Windows development. Microsoft's Visual Studio Code, which lets developers build and debug web and cloud applications, is popular with developers.
The acquisition could mean closer integration between Microsoft's developer tools and the GitHub service.
"Microsoft is a developer-first company, and by joining forces with GitHub we strengthen our commitment to developer freedom, openness and innovation," said Nadella in a statement. "We recognize the community responsibility we take on with this agreement and will do our best work to empower every developer to build, innovate and solve the world's most pressing challenges."
With regulatory approval, the deal is expected to close by the end of the year.
San Francisco-based GitHub was founded in 2008 as Logical Awesome and valued at $2 billion in 2015 after raising $250 million in venture capital.