NEW YORK (TheStreet) -- Microsoft (MSFT) shares are up 1.5% to $49.51 on Thursday after the electronics giant announced that it was purchasing Israeli software start up Aorato in a deal that is supposed to be worth about $200 million, according to the Wall Street Journal.
"With Aorato we will accelerate our ability to give customers powerful identity and access solutions that span on-premises and the cloud, which is central to our overall hybrid cloud strategy," company vice president for cloud and enterprise marketing Takeshi Numoto said in a statement on the company's blog today.
The company was founded in 2011 by veterans of the Israel Defense Forces technology unit who designed software that monitors access to central communication components in enterprise IT systems.
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TheStreet Ratings team rates MICROSOFT CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MICROSOFT CORP (MSFT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."