Microsoft Corporation may acquire Cloudyn Software

Microsoft is in talks to acquire Israel-based cloud cost optimisation software provider Cloudyn, according to Israeli business website Calcalist.

The report, which did not cite its sources, suggested the price could be between USD 50.00 million and USD 70.00 million in a deal that comes amid a wave of large cloud platforms buying smaller rivals.

Techcrunch approached the two companies for comment; however, both groups gave the same response that they had nothing to say at this time.

Although a source close to the matter told the technology online reporter no papers have been signed, cautioning the talks could potentially fall apart or change course.

Cloudyn is currently a partner of Microsoft as it supports its Azure public cloud in addition to other clients Amazon Web Services, Google’s cloud platform and OpenStack-based infrastructure.

The potential target offers an easy-to-use software-as-a-service cloud monitoring, analytics and optimisation application that provides accurate and reliable cost allocation and chargeback.

Zephyr, the M&A database published by Bureau van Dijk, shows Cloudyn has raised about USD 19.00 million in funding from investors such as RDSeed, Titanium Investments, Carmel Ventures and Infosys.

According to Techcrunch, Microsoft’s suggested offer values the company at more than double what it has raised and 10.0 times multiple on revenues, which Calcalist reported was between USD 5.00 million to USD 7.00 million.

Microsoft is billed as one of the leaders in the cloud services market through its Azure business, although it faces increased competition from businesses which who use platforms for storage, running applications and other services.

Should this deal go ahead it would be the fourth for the business in Israel since the start of 2015, according to Zephyr; the company paid USD 200.00 million to buy the remaining shares in mobile device touchscreen company N-Trig in May 2015.

In January 2015 Microsoft picked up online text analysis group Equivio for USD 200.00 million, before it paid USD 150.00 million for enterprise information security software group Secure Island Technologies in November 2015.

© Zephus Ltd

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