Microsoft and Axiom Software have announced a $10 billion merger, which they said will “open up the future of financial technology.”
The deal is a key step toward creating a new generation of financial services that will help consumers, businesses and governments “enable new financial services experiences.”
Axiom is a cloud-based financial management platform that is used by more than 400,000 companies and will allow Axiom to offer more than 100 services to clients.
Microsoft is building a $50 billion cloud-focused division called Dynamics, while Axiom’s software and services will be used by a new financial software division called Axiom Financial.
Axiom has said that it expects to spend $30 billion on the deal over the next three years, including a $20 billion investment in new technology.
Microsoft will continue to operate Axiom as a wholly owned subsidiary.
Microsoft and AXIOM, which have been working together since 2005, were partners in the $4 billion acquisition of the software giant.
Axioms software will be integrated with Microsoft Azure, Microsoft’s cloud computing platform, which will allow customers to access and manage their finances and transactions on Microsoft’s platform.
Axial Technologies, a subsidiary of Axiom, will be responsible for Axiom financial services and will also offer a suite of digital tools for consumers.
The deal also includes $5 billion in equity for Axial.
“We look forward to making this a more successful and successful acquisition,” said Joe Belfry, CEO of Axial, in a statement.
“This is a win-win for consumers, consumers, and Axial and Microsoft.
The combined company will create a strong foundation for the future for the technology we built over the last two decades, and we are excited to continue building the technology for consumers and businesses.”
Microsoft and the $10B acquisition will help Axiom compete in the cloud-led financial services space, with the potential to become a leader in this space.
Microsoft, which already has $1.7 billion in cash, is also building a new $1 billion financial technology center in Redmond, Wash., which is expected to open in 2018.