Updated May 16, 2018 06:59:58Microsoft Corp. has announced a $9 billion deal to buy a software company called Epson that created tools for the United States military, including a software reporter tool for journalists.
The deal, which includes a 30 percent stake in the Epson company, is valued at $9 million per share, according to a person familiar with the matter.
Epson was founded in 2014 by a former software executive who left Microsoft in 2016.
The software company was spun off in 2020 by Microsoft.
The transaction is valued based on the terms of the agreement, the person said.
The person spoke on condition of anonymity because the transaction was not announced publicly.
Epton is an enterprise software company.
The acquisition, which was first reported by the Wall Street Journal, is a potential signal that Microsoft has decided to focus its investments on the Windows-based operating system that dominates the mobile and tablet market.
Microsoft, which has been under pressure from critics who say the company is too focused on Windows and Office products, has been focusing more on mobile and Internet-connected devices, such as Microsoft Surface and Microsoft Surface Book, as it tries to regain a footing in the crowded smartphone market.
Epston, founded in 1999, makes tools that help companies analyze data from their data centers, the technology that powers mobile devices, and improve the performance of cloud services, such like Microsoft Azure and Amazon Web Services.
The company said its software also provides security and reliability tools for enterprises and governments.
Microsoft said in a statement that the company plans to invest in new products and services in areas that it has a strong history in.
The software company has been working on a new product called Stream Analytics, which Microsoft announced in April was adding to its suite of tools that can help businesses monitor their data and analyze how the data is being used.
Stream Analytics can be used for data collection, data mining, analysis and visualizations, Microsoft said.
Epstons software also helps businesses improve their security and compliance efforts.
Microsoft said in March that it will launch a new tool called Security and Risk Management (SRM) that will help enterprises protect their data in response to emerging threats and data breaches.
Microsoft is also expected to launch a cloud-based application called Cloud Security in 2021.
Microsoft also plans to launch Windows Azure in 2021 as well as Office 365 in 2021, the company said in its statement.
Epsten’s founder, Eric T. Bienstock, told the Wall Journal in April that the acquisition would help Microsoft become more efficient with its resources and that he expected the software company would soon offer a suite of services that would help businesses manage their data better.
Epstein is also a member of the Microsoft Accelerated Cloud Alliance, which focuses on cloud-centric solutions.