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Microsoft is paying $7.5 billion for the popular coder hangout GitHub as the maker of Windows further embraces the types of open-source projects it used to shun. As per a report from Business Insider, the Redmond-based tech giant has been in discussions with the software developer platform in the last several weeks with hopes of making a rather major acquisition.

Nat Friedman, the Microsoft vice president who will soon be the CEO of GitHub.

Microsoft says that it will retain GitHub's status as an "open platform", being free to use for open source projects and agnostic towards programming languages as well as development tools. Full news release below.

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Microsoft has announced it is to acquire the code-sharing site Github.

Microsoft CEO Nadella has been moving the company away from hesitations with open-source software development and investing more heavily in resources like GitHub.

"Most importantly, we recognize the responsibility we take on with this agreement", Nadella wrote. The all-stock deal is expected to close by the end of the year, subject to regulatory approval in the U.S. and EU. Secondly, Microsoft will accelerate enterprise developers' use of GitHub through direct sales and and partner channels and will also give access to Microsoft's global cloud infrastructure and services. Chris Wanstrath, the GitHub cofounder who is now serving as CEO, will take the new title of Microsoft technical fellow and remain an adviser to the company. "Nat has a ton of experience with software and the open source software community, having co-founded Xamarin and worked on numerous open source projects over the years, and is the ideal person to help GitHub grow and continue to make life better for developers".

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According to GitHub, as of March 2018 it has more than 27 million developers with 80 million repositories hosted. He also said this deal will help expand the use of Microsoft's own tools and services to more developers. And the choices these developers make will increasingly determine value creation and growth across every industry.

Created in 2008, GitHub allows developers to cooperatively manage software and has more than 28 million users around the world.

Upon closing, Microsoft expects GitHub's financials to be reported as part of the Intelligent Cloud segment.

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Over the past few years, GitHub and Microsoft were having conversations to pursue acquisition but nothing materialized. Non-GAAP excludes expected impact of purchase accounting adjustments, as well as integration and transaction-related expenses. That said, the price seems right for what GitHub is, so it wouldn't surprise me if that was what Microsoft paid.