Microsoft has bought Dawson Enterprises, a digital asset management company, for $3.9 billion, the company announced Thursday.
The acquisition of Dawson Enterprises is part of Microsoft’s plan to “improve the efficiency of its cloud services by enabling customers to securely manage and store their own assets, without any middlemen,” the company said in a blog post.
Dawson Enterprises will continue to operate independently, the post said.
The company, which was founded in 2012, was acquired by Microsoft in 2015 for $1.9 million.
The transaction was completed last month.
Dawson Enterprises, founded in 2015, was founded to help “the business community better understand and manage digital assets,” Microsoft said in its blog post announcing the acquisition.
Dissatisfied with the pace of Microsofts cloud services, Dawson Enterprises created an “enterprise virtual environment” that is similar to Microsofts Exchange Online and Microsofts Azure cloud services.
In addition to its cloud service offerings, Dawson has developed an enterprise-grade digital asset platform that includes asset management tools, digital assets management software, and other services, the blog post said, without giving further details.
Davies CEO and co-founder Jonathan Davies said in an interview with CoinDesk last year that his company was “never going to get the same level of success that Microsoft had with Exchange Online, Azure, and its other cloud offerings”.
“Dawds team of core developers, IT and customer support is one of the few things that Microsoft has that we don’t have,” Davies said.
“Microsoft was one of many large tech companies that went for the low-hanging fruit.”
Dawkins, whose business has been growing since 2014, was formerly Microsoft’s most valuable employee, according to a 2015 Bloomberg Intelligence report.
He also earned a $20 million bonus in 2018.
Daws’ business is largely based on virtual private networks, or VPS, which are hosted on Microsofts own Azure platform.
Dawson operates an “online-only” version of its VPS called Daws Enterprise.
Dwight Evans, Dawson’s co-CEO, said in his blog post that the acquisition was “not about our cloud services”.
“We have built a platform to help our customers and partners better manage digital wealth,” Evans said.
“It’s not about our services.
It’s about how we make digital wealth.
We don’t need any more middlemen.”
Microsoft has been building out its cloud-based services since 2015, and has previously bought startups such as BitMint and Paypal.