Private equity, Networking, Content

Microsoft Completes Metaswitch Networks Acquisition

Microsoft has completed the Metaswitch Networks acquisition from Francisco Partners, the private equity firm has confirmed.

The deal, announced in May 2020, positions Microsoft Azure Cloud to more effectively support virtualized networks along with voice, data and communications solutions for service providers.

Moreover, the deal may  accelerate 5G wireless and Internet of Things (IoT) service provider and partner opportunities.

Preparing Azure for 5G and IoT Service Providers

Microsoft has been particularly active in 5G opportunities and the network virtualization market. For instance, another recent M&A deal involved involved buying Affirmed Networks.

MetaSwitch’s customer base spans more than 1,000 communications service providers and network equipment providers. Metaswitch had 25 million business subscribers as of March 2019. The company’s MaX software solutions are designed to help service providers build and operate communication services.

Microsoft Inspire 2020 News? It's unclear if or how Microsoft will promote the Metaswitch and Affirmed Networks acquisitions during Microsoft Inspire 2020, a virtual worldwide partner conference set for July 21-22.

Francisco Partners Sells Metaswitch: Executive Perspectives

Martin Lund, CEO, MetaSwitch Networks
Martin Lund, CEO, MetaSwitch Networks
Deep Shah, co-president, Metaswitch Networks

In a prepared statement about the deal, Deep Shah, co-president at Francisco Partners, said:

"We are proud to have been part of the company’s journey and are thrilled for the team at Metaswitch. Microsoft will be a very strategic home for this talented group, enabling them to continue to deliver innovative solutions that drive the evolution of modern communications networks.”

Added Martin Lund, CEO of Metaswitch:

“Francisco Partners has been a great partner for us. Their team has consistently offered resources and support to help us grow, innovate and maximize value. We are excited to join the Microsoft team and together serve the needs of our customers with technology, business and network innovations.”

Centerview Partners, Jefferies, Kirkland & Ellis, Alvarez & Marsal and PwC acted as advisors to Metaswitch and its shareholders, according to the M&A announcement.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.