Posted October 18, 2018 12:29:31 GitHub is getting ready to buy a major software platform company.
The Silicon Valley company will pay $1 billion for the startup’s Kitchen Floor office space and $300 million in stock.
The deal is worth $1,500 per share, according to people familiar with the matter.
The $1-billion purchase is worth about $50 million more than the $2 billion that GitHub was valued at just over a year ago.
The company said in a statement that it would retain Kitchen Floor founder and CEO Josh Mottola.
“Josh is an exceptional leader who has built a strong foundation for our company,” the company said.
“Our goal is to grow the team and become a leader in building products that are useful for people, both inside and outside the organization.”
The company has been building its software platform, GitHub-powered tools and business tools since 2012.
The price of the Kitchen Floor deal is below what it was worth just over two years ago.
GitHub’s board approved the deal last year, but it took a year for a board vote to go through.
That delay was partly because of the merger that closed last year between Twitter and its parent company, the company announced in January.
Twitter had been pursuing the acquisition for years, but in 2018, Twitter said that it was ready to move forward with the deal.
GitHub, which has a valuation of about $10 billion, is owned by the venture capital firm Andreessen Horowitz.
The stock is up over 13% since the deal was announced.
The purchase is expected to close in the third quarter of 2019.
The board also approved a merger that is expected later this year between eBay and its rival eBay Marketplace.
eBay had said in 2018 that it had not yet decided whether to make the deal official.