Microsoft's Xamarin Acquisition Could Boost Windows Phone Sales

Since it began developing Windows 10 ($139.00 at Microsoft Store) , Microsoft has dedicated itself to creating applications that provide a uniform Windows experience across smartphone, tablet, and desktop devices. Yesterday, the Redmond, Washington-based company took this mission a step further.

By agreeing to acquire mobile app development company Xamarin Inc., Microsoft intends to help its developers build universal apps that run on all major mobile and desktop operating systems (OSes). In combination with Microsoft's existing suite of app development tools, Visual Studio, Xamarin will provide developers with a single solution to develop, test, and deliver mobile apps across all OSes, Microsoft said in a statement.

Perhaps more importantly for Microsoft, Xamarin's expertise would help it expand the number of apps available for Windows phones. As of July 2015, there were only 340,000 apps available on the Windows Phone Store compared with 1.6 million Android apps and 1.5 million iOS apps, according to data compiled by research firm Statista. Windows phones have only 1.1 percent of the global smartphone market share. 

For businesses, this marriage would provide an app bridge between the three major OSes that could help to propel Microsoft forward in the arms race for app and hardware enterprise adoption.

"As mobility makes a gradual move to the enterprise, enterprises continue to look for ways to develop front-end applications more efficiently," said Al Hilwa, Program Director of Software Development Research at IDC, in an email. "In particular, they are looking to leverage existing developer skills they have built up over the years in Java and .NET programming models and repurpose them for modern mobile development. Xamarin hits exactly this spot and effectively makes Microsoft a serious player in cross-platform software development."

Last week, Microsoft unveiled the Lumia 650, a metal smartphone with a removable battery and expandable storage. At the time of the release, Microsoft said, in a statement, the Lumia 650 would "bring first class to business class" by providing "the perfect balance between work and personal needs."

Xamarin has more than 15,000 customers in 120 countries, including Coca-Cola and JetBlue. More than 1.3 million developers have used its technology to create mobile apps.

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Microsoft was in the final stages of negotiations to acquire Xamarin back in 2014, according to a CRN report. However, the deal was not finalized at the time.

Right now it is unclear what Microsoft will pay for Xamarin. Microsoft declined to provide additional comment on this story. However, The Wall Street Journal reports that the acquisition is expected to close at around $400-500 million, according to sources close to the deal. Microsoft is expected to retain all 350 of Xamarin's employees, and Xamarin will retain its branding after the deal closes.