Xamarin is a San Francisco-based maker of software development tools.
The acquisition will help developers create mobile applications across Apple's (AAPL) iOS, Google's (GOOGL) Android and Microsoft's (MSFT) Windows by making it easier to share code on various operating systems, Scott Guthrie, Microsoft's executive vice president of cloud and enterprise, wrote in a blog post.
The deal underscores Microsoft CEO Satya Nadella's goal of making the company more relevant to developers who are focused on mobile platforms at Apple and Google, according to the Wall Street Journal.
"The combination of Xamarin, Visual Studio, Visual Studio Team Services, and Azure provides a complete mobile app dev solution that provides everything you need to develop, test, deliver and instrument mobile apps for every device," Guthrie wrote in the blog post.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B+.
Microsoft's strengths such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance, expanding profit margins and notable return on equity outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: MSFT
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.