Microsoft agrees to buy coding site GitHub for $7.5 billion

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Microsoft has reached an agreement to buy code-sharing company GitHub for US$7.5 billion in stock.Gerard Julien/AFP

Microsoft Corp. said it reached an agreement to buy GitHub Inc., the code repository company popular with many software developers, for US$7.5 billion in stock.

The deal will add to Microsoft’s operating income, including some costs, in its fiscal year 2020, the company said in a statement Monday. Microsoft expects the deal to close by the end of 2018. The shares were up less than 1 per cent to US$101.32 at 9:32 a.m. in New York.

The acquisition provides a way forward for San Francisco-based GitHub, which has been trying for nine months to find a new chief executive officer and has yet to make a profit from its popular service that allows coders to share and collaborate on their work. It also helps Microsoft, which is increasingly relying on open-source software, to add programming tools and tie up with a company that has become a key part of the way Microsoft writes its own software.

GitHub will operate independently and named former Xamarin CEO and current Microsoft developer tools executive Nat Friedman as it’s chief. It will continue to support the programming languages, tools and operating systems of the user’s choice.

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