Microsoft will sell its software and services division to the Oracle Corporation, Microsoft said Wednesday.
The deal is subject to regulatory approval.
Microsoft is a major player in cloud computing and data center technology, but is also trying to shift its focus to mobile computing.
“Today, we’re excited to join Oracle to help build the next generation of Microsoft solutions for businesses and consumers,” CEO Satya Nadella said in a statement.
Microsoft’s share price rose nearly 1 percent to $64.69 after the announcement.
“We are pleased to partner with Oracle to expand our cloud offerings and build on our strong platform portfolio,” Nadell said.
The transaction will include Microsoft’s mobile division, which includes the Windows, Office, and Exchange platforms, Microsoft’s Office apps, Microsoft Teams, and Xbox Live.
The companies will also merge operations at the Microsoft Research Center in Redwood City, California, according to the announcement from the New York Stock Exchange.
The acquisition will create a new global software and technology services division, and the combined company will also acquire an additional 12 percent stake in Oracle, the Wall Street Journal reported.
“This transaction will enable us to deliver a comprehensive portfolio of cloud solutions to customers and grow our global cloud services business and our global data center services business,” Nardelli said in the statement.
“The combined companies will provide Oracle customers with an entirely new, unified computing platform that combines unparalleled performance, agility, and scale, and is powered by the world’s most advanced software and cloud infrastructure.”
Microsoft and Oracle announced a $50 billion merger in September.
Microsoft said at the time that the combined companies would have an “unparalleled” cloud infrastructure and cloud computing offerings.
“With our new collaboration, we will leverage our combined experience in cloud services to deliver an unparalleled suite of cloud services for our customers,” Naidals said at that time.
The combined companies have been working to integrate their cloud services into their own services for years, according a person familiar with the matter.
The Microsoft and Google Cloud platforms were among the cloud services companies that Google announced last year it would shut down.