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Microsoft to Buy Metaswitch, Its Second Telecom Acquisition This Year

Microsoft agreed to buy networking-software firm Metaswitch as part of a plan to make 5G more efficient for operators.
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Microsoft agreed to purchase the networking software firm Metaswitch Networks, saying the deal builds on another recent acquisition, Affirmed Networks.

The latter deal closed in late April, and Microsoft wrote in a blog post that it "intends to leverage the talent and technology of these two organizations, extending the Azure platform to both deploy and grow these capabilities at scale in a way that is secure, efficient and creates a sustainable ecosystem."

Microsoft  (MSFT)  shares at last check were down 1.3% on Thursday to $177.43.

Yousef Khalidi, Microsoft's vice president of Azure Networking, described the Metaswitch acquisition as part of a goal to make delivering 5G more efficient for operators.

"Our intention over time is to create modern alternatives to network infrastructure, enabling operators to deliver existing and value-added services – with greater cost efficiency and lower capital investment than they’ve faced in the past," he wrote.

The acquisition of Metaswitch, London, comes just a few weeks after Microsoft's latest acquisition of a networking software firm.  

Microsoft announced its acquisition of Affirmed, the Acton, Mass., builder of virtualized cloud-native mobile-network solutions, in late March.  

Microsoft shares are up about 10% year to date.