Software provider Microsoft has agreed to acquire US-based mobile network technology provider Affirmed Networks for a reported $1.35bn, allowing corporates Qualcomm, Vodafone and Deutsche Telekom to exit.
Although the companies did not disclose the size of the transaction, it valued Affirmed at $1.35bn, people familiar with the matter told Bloomberg.
Founded in 2010, Affirmed provides virtualised mobile network technology for enterprises, enabling them to manage their mobile applications across a range of networks including 5G, simplifying app deployment and cutting the costs involved.
The technology will be incorporated into Microsoft’s Azure cloud computing activities and will be aimed at telecommunications operators looking to manage cloud-based network workloads.
Yousef Khalidi, corporate vice-president of Microsoft’s Azure Networking subsidiary, said: “This acquisition will allow us to evolve our work with the telecommunications industry, building on our secure and trusted cloud platform for operators.
“With Affirmed Networks, we will be able to offer new and innovative solutions tailored to the unique needs of operators, including managing their network workloads in the cloud.”
The deal follows $141m in funding for Affirmed, which emerged from stealth in 2012 having secured a total of $52m from T-Venture and Vodafone Ventures, subsidiaries of telecoms firms Deutsche Telekom and Vodafone, as well as Matrix Partners, CRV and Lightspeed Venture Partners.
The company added $51m in a 2013 series C round led by venture capital firm Bessemer Venture Partners and backed by all its existing investors as well as family investment fund KCK Group.
Investment firm Centerview Capital Technology led a $38m round for Affirmed in February 2019 that also featured Qualcomm Ventures, mobile chipmaker Qualcomm’s corporate venturing unit, as well as Eastward Capital Partners.
