Microsoft To Acquire Metaswitch

Just weeks after announcing the acquisition of  Boston area startup Affirmed Networks, a 5G specialist, Microsoft has announced the acquisition of UK -based firm Metaswitch Networks. Metaswitch develops software for cloud-based communication networks.

“This announcement builds on our recent acquisition of Affirmed Networks, which closed on April 23, 2020. Metaswitch’s complementary portfolio of ultra-high-performance, cloud-native communications software will expand our range of offerings available for the telecommunications industry. Microsoft 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.” Azure Corporate VP  Yousef Khalidi said in a blog post

Microsoft is acquiring to keep up or try to get ahead of the 5G competition. They may believe it to be more cost-effective to acquire technology, market share, and talent than to build internally. With exorbitant levels of cash on hand, they need to put it to work for shareholders and one good way is to acquire other companies, their technology, talent, and clients. I expect these strategic acquisitions to continue.

Smaller companies need to have their ducks in a row to facilitate a smooth acquisition process and ensure proper acquisition valuation. Proper asset management is a window into the overall management control and oversight and operational efficiency of the company. In addition to the ongoing operational benefits it will yield, a full physical inventory will eliminate any surprises and present the company in a most favorable manner. When selling a house, the maximum value is achieved when clean, organized and staged properly.

As for Asset Management, Microsoft needs some due diligence performed to assess the technology assets- hardware and software being acquired. An independent third party asset audit should be performed to determine tangible and intangible assets acquired and this audit assessment will help to integrate these technologies into Microsoft’s operation and financial reporting.

Assertive specializes in conducting fixed asset physical inventory mergers and acquisition due diligence. We conducted fixed asset audit due diligence for AT&T’s acquisition of Warner Brothers, Oracle’s acquisition of Sun Microsystems, and many others. As companies like Microsoft continue to make additional acquisitions, physical inventory due diligence will be an essential element of the process.

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