Microsoft To Acquire Affirmed Networks

  • General
  • March 27, 2020
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  • 4 minutes read
Microsoft CEO Satya Nadella.

image: Microsoft

Just a day ago, Microsoft announced it has sealed an agreement to acquire Affirmed Networks, a Massachusetts-based venture-backed company that develops cloud-based 5G software. The announcement came just a day after Affirmed Networks announced a CEO change. According to Bloomberg, Microsoft’s acquisition deal values Affirmed Networks at $1.35 billion, which if certain, will be Microsoft’s biggest known acquisition since it bought out GitHub for $7.5 billion in 2018. Bloomberg reports Affirmed Networks raised funding at a $1.35 billion valuation just last month, so Microsoft paying that exact amount for the company doesn’t seem far-fetched.

According to Pitchbook data, Affirmed Networks has raised more than $200 million in funding since its inception in 2010. Investors in the company include Deutsche Telekom, CRV, Matrix Partners, Qualcomm Ventures, Vodafone Ventures and Bessemer Venture Partners.

With 5G on the rise, it shouldn’t be startling that Microsoft is spending a sizeable amount to make a dent in the burgeoning industry. Telecom carriers globally have already begun testing 5G networks for mainstream use even though actual use could take years more. Several smartphone companies have already begun producing 5G-supported smartphones. To put it precisely, 5G technology seems like it’s here to stay, and Microsoft looking to capitalize on its rise may pay off sizeably in future time.

Affirmed Networks helps develop virtual networks, what’s usually known as Network Function Virtualization (NFV), for telecom customers using 5G technology. Affirmed’s customers (telecom firms) make use of its virtual networks to facilitate their network operations. Such customers include companies like Vodafone, Orange, AT&T, SoftBank, Turkcell, Etisalat, DNA and Cubic Telecom.

Affirmed says its 5G software has been used on more than 100 networks across more than 80 countries.

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