Microsoft is to acquire professional social networking platform LinkedIn for $196 per share in an all-cash transaction valued at $26.2bn, inclusive of LinkedIn's net cash.
Following the acquisition, which is thought to be one of the the biggest tech deals ever, LinkedIn will retain its brand, culture and independence. Jeff Weiner will remain CEO of LinkedIn, reporting to Satya Nadella, CEO of Microsoft.
Reid Hoffman, Chairman of the board, co-founder and controlling shareholder of LinkedIn, and Weiner both fully support this transaction.
LinkedIn has witnessed 19% growth year-over-year to more than 433 million members worldwide with over 105 million unique visiting members per month.
"The LinkedIn team has grown a fantastic business centered on connecting the world's professionals," said Nadella.
"Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organisation on the planet."
Weiner added: "Just as we have changed the way the world connects to opportunity, this relationship with Microsoft, and the combination of its cloud and LinkedIn's network, now gives us a chance to also change the way the world works.
"For the last 13 years we've been positioned to connect professionals to make them more productive and successful, and I'm looking forward to leading our team through the next chapter of our story."
The transaction has been unanimously approved by the Boards of Directors of both LinkedIn and Microsoft.
The deal is expected to close this calendar year.