Microsoft to Acquire Software Developer Xamarin

Xamarin Inc., the rapidly growing San Francisco based software developer, will soon be owned by one of the biggest names in tech: Microsoft (News - Alert). Reports of a deal broke yesterday, placing Xamarin’s value between 400 and 500 million dollars. These two companies had already had a working relationship in the past, but this is certainly taking it a step further.

Xamarin’s main draw is that it develops software tools that help bridge the gap between Microsoft and other operating systems. With Xamarin’s tools, it becomes much easier for developers to create apps of Windows products (like Microsoft Office) for Apple’s (News - Alert) iOS or Google’s Android operating platforms. This is incredibly appealing for Microsoft, who has thus far been largely unsuccessful in establish a presence in the mobile market. Their Windows Phone (News - Alert) OS is in use by only 1.1 percent of mobile customers. Thus, having a greater ability to spread their apps through other operating systems would provide a big benefit.

Microsoft has already begun this endeavor to make their applications more accessible across various mobile operating systems. They already have successful Microsoft Office applications for Apple’s iPhone and iPad, and are hoping that this closer alliance with Xamarin will allow them to build on that success. Scott Guthrie (News - Alert), executive vice president of Microsoft Cloud and Enterprise Group, says that “We want to make sure our Microsoft products work with all of [the various operating systems] in a rich way,” and called the Xamarin deal a key development in the “new openness that we’ve been driving toward.”

This deal represents a clear win for both sides. Xamarin gets to spread its tools to a much wider and more sophisticated pool of developers, while Microsoft gets closer to its goal of spreading its software throughout the mobile world. As Xamarin co-founcer Nat Friedman succinctly puts it, “We get to hit a lot more people and a lot more apps,” a clear plus for both organizations.