Microsoft has bought the research and technology (R & D) business of Microsoft Research UK, the company announced on Monday.
The deal will see Microsoft Research acquire the entire UK research and tech industry for around £4.2bn ($5.1bn).
The acquisition of Microsoft’s UK research arm will see it create an innovation hub in the capital and a number of new research facilities in the US and Europe.
The acquisition will bring Microsoft Research’s global R&D network to over 600 facilities in more than 130 countries.
Microsoft is the first technology company to enter the UK research industry in more then 100 years.
It was founded in 1957 by Ray Buck and Steve Ballmer and became the world’s largest software maker in 2015.
“It’s exciting news to see Microsoft join forces with our UK partners in creating the world-class innovation hub that we believe will enable us to create and accelerate a more sustainable future for the UK and for the world,” said David Lapp, President and CEO of Microsoft.
“We have a long history of working together to create innovative products and services, and we will continue to collaborate with the UK government and the research community to help ensure the UK remains a leader in R&d and innovation.”
Microsoft Research is the world leader in creating software for healthcare and research.
The UK’s research sector generates $3.6 trillion in economic value, making it one of the most important markets for Microsoft.