Here's why Microsoft spent $250 million on smartphone keyboard SwiftKey

Satya NadellaChinaFotoPress via Getty ImagesMicrosoft CEO Satya Nadella.

Microsoft has confirmed in a blog post that the company is buying SwiftKey, the London-based iPhone and Android keyboard, and will absorb its 150 person team into the company.

The deal, which was first reported by The Financial Times, is worth around $250 million (£175 million) and follows a string of other acquisitions by Microsoft that focus on Android or iPhone-only apps, such as Sunrise, a calendar app.

According to Microsoft, “this acquisition is a great example of [the company’s] commitment to bringing its software and services to all platforms.” The company will look to integrate SwiftKey’s “core technology across the breadth of our product and services portfolio.”

Here are the reasons Microsoft may have bought SwiftKey:

The acquisition furthers Microsoft’s artificial intelligence efforts, image, and reach on iPhone and Android, making it a good deal for the company, and it wouldn’t be unreasonable to expect more of these kind of acquisitions in the future.

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