Microsoft Buys FSLogix, Its Second Acquisition In Two Weeks And 16th For The Year

Microsoft announced today that it has acquired FSLogix, a startup that works in desktop virtualization tooling. The Redmond-based software giant claims that the deal will “extend [its] virtualization capabilities and provide an even richer experience” for customers of its subscription productivity services.

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The deal caught our eye as it is the second startup acquisition by Microsoft in as many weeks, and the 16th of the calendar year. (Microsoft operates on a fiscal calendar that is distinct from what hangs on your wall. However, we track its dealmaking activity against the regular, 12-month cadence.)

Last week Microsoft bought XOXCO, a company that made bots, including one for the popular Slack service, a company that has attracted quite a lot of the Windows-creator’s attention.

But while XOXCO had raised just $1.5 million in known funding, FSLogix has raised over ten million, including a $7.5 million Series C from March of this year. While a $7.5 million Series C may sound small by today’s standards, FSLogix is not based in Silicon Valley where apartments are priced like seed rounds and proper houses cost as much as a modern Series A. Instead, Microsoft’s latest pickup is based in Suwanee, Georgia, where money goes further.

That’s another reason why this deal is fun. How many other Georgia-based startups that have been acquired can you name? Here’s a few for reference. It’s a region that has nearly 1,300 companies, according to Crunchbase, with at least one funding round and a few hundred known exits. Sure, it’s not San Francisco, but that’s also not zero.

With Microsoft making some noise in the area, perhaps we’ll see even more activity. I doubt that this deal is a pure acquihire, given that FSLogix raised less than a year ago. That means real dollars, again, probably, changed hands. If those funds are reinvested into the region it could bode well for the Georgia startup scene.

Also, here’s where Suwanee is on a map. It’s just outside of Atlanta.

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