Published On: Wed, Feb 3rd, 2016

Microsoft Confirms SwiftKey Acquisition (For $250M In Cash)

Microsoft currently reliable that it has acquired SwiftKey — a startup formed out of London that creates keyboard apps for Android and iOS inclination and is already commissioned and used on some 300 million devices. The terms of a understanding are not being disclosed though sources tighten to a understanding tell us it’s $250 million in money after Microsoft kick out other meddlesome buyers, that we’ve listened also enclosed Apple.

The understanding will see Microsoft make serve inroads into mobile capability services — an area where it’s already done other acquisitions to benefit ground, such as Wunderlist and Acompli.

But from what we understand, SwiftKey might also turn partial of another Microsoft ambition. Microsoft wants to grow use of a Cortana digital partner on Android, and by integrating Cortana into SwiftKey, some trust that it could be a gateway ramping adult Cortana use without carrying to implement a standalone app. (Cortana, incidentally, is being integrated elsewhere, too.)

The news of a arriving sale was initial damaged by a FT final night.

The exit also raises some questions about either crafty record is adequate for a startup to be a viable, standalone business: SwiftKey had started as a paid app though eventually changed into a freemium indication to attract some-more users. It’s not transparent what kinds of earnings a startup was removing on that model. More to a point: fasten a most incomparable height like Microsoft will give a association a space to rise tech that might fit into a bigger business devise that relies reduction on Swiftkey as a standalone service.

In a event, SwiftKey will stability doing what it does, with a whole group fasten Microsoft and apropos a partial of a company’s ambitions to possess a mobile capability space — an area underscored by a prior acquisitions of Wunderlist and Acompli. Specifically, in a entrance months, it will get integrated with Microsoft’s Word Flow record for Windows.

“In this cloud-first, mobile-first world, SwiftKey’s record aligns with a prophesy for some-more personal computing practice that expect a needs contra responding to a commands, and directly supports a aspiration to reinvent capability by leveraging a intelligent cloud,” Harry Shum, EVP of record and research, pronounced in a blog post. He says that SwiftKey estimates that a users have saved scarcely 10 trillion keystrokes, opposite 100 languages, saving some-more than 100,000 years in total typing time.

Shum adds that Microsoft will continue to offer a apps opposite opposite platforms, and it’s a protected gamble that we’ll see it integrated into Windows products, too.

“We’ll continue to rise SwiftKey’s market-leading keyboard apps for Android and iOS as good as try scenarios for a formation of a core record opposite a extent of a product and services portfolio,” he writes. “Moreover, SwiftKey’s predictive record aligns with Microsoft’s investments and aspiration to rise intelligent systems that can work some-more on a user’s interest and underneath their control.”

SwiftKey cofounders Jon Reynolds and Ben Medlock also have some difference to contend on a news.

SwiftKey had lifted only underneath $22 million from investors that embody Index, Accel and Octopus. From what we understand, some of those investors realised there was a window of event with Microsoft when a Windows program hulk started appropriation other companies focused on mobile capability and intelligent estimate that leveraged cloud architecture.

SwiftKey afterwards proceeded to head-hunted James Bromley, afterwards MD of MailOnline, to come on house as COO to shepherd a routine of traffic with Microsoft and other intensity buyers.

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