Tech behemoth Microsoft has decided to acquire Israeli startup Cloudyn. The decision comes even as companies all over the world are working to strengthen their technology by snapping up startups left and right. The Cloudyn acquisition was on the horizon since the beginning of the year however, it is only now that Microsoft has confirmed it.
Reportedly, the acquisition is costing Microsoft somewhere between $50 to $70 million — a drop in the bucket for Microsoft, but a substantial price for a relatively new and lesser known startup.
Speaking about the acquisition, Microsoft’s Jeremy Winter wrote,
I am pleased to announce that Microsoft has signed a definitive agreement to acquire Cloudyn, an innovative company that helps enterprises and managed service providers optimize their investments in cloud services.
The Redmond giant will now be able to deploy Cloudyn’s billing and management solutions in its own offering. This could give the company a leg up against competitors like the AWS and Google Cloud. Integration should not prove to be much of a problem either considering that Cloudyn was already a Microsoft partner and earlier this year, had announced support for Microsoft Cloud Solution Providers.
Meanwhile, the company’s investors are receiving a very substantial return on their investments as well. The company has raised $20.5 million so far and had revenues under $10 million per annum. However, it was growing very rapidly and had clients in the thousands, including multiple Fortune 500 companies.
So a $50 to $70 million price tag is almost certain to guarantee significant returns for investors, which include names like Carmel Ventures, Infosys and Russia’s Titanium.
This is the second Israeli startup that the Satya Nadella led firm has acquired in the span of a month. The company’s last acquisition took the form of security firm Hexadite, which was bagged for a price of $100 million.