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Microsoft will acquire LinkedIn for $196 per share in an all-cash transaction valued at $26,2-billion, inclusive of LinkedIn’s net cash.

LinkedIn will retain its brand, culture and independence, while Jeff Weiner will remain CEO of LinkedIn, reporting to Satya Nadella, CEO of Microsoft.

LinkedIn is the world’s largest and most valuable professional network and continues to build a strong and growing business.

Over the past year, the company has launched a new version of its mobile app that has led to increased member engagement; enhanced the LinkedIn newsfeed to deliver better business insights; acquired a leading online learning platform called Lynda.com to enter a new market; and rolled out a new version of its Recruiter product to its enterprise customers.

These moves have resulted in increased membership, engagement and financial results, specifically:

* 19% growth year over year (YOY) to more than 433-million members worldwide;

* 9% growth YOY to more than 105-million unique visiting members per month;

* 49% growth YOY to 60% mobile usage;

* 34% growth YOY to more than 45-billion quarterly member page views; and

* 101% growth YOY to more than 7-million active job listings.

“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” Nadella says. “Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organization on the planet.”

Weiner adds: “Just as we have changed the way the world connects to opportunity, this relationship with Microsoft, and the combination of their cloud and LinkedIn’s network, now gives us a chance to also change the way the world works.

“For the last 13 years, we’ve been uniquely positioned to connect professionals to make them more productive and successful, and I’m looking forward to leading our team through the next chapter of our story.”

The transaction has been unanimously approved by the boards of directors of both LinkedIn and Microsoft. The deal is expected to close this calendar year and is subject to approval by LinkedIn’s shareholders, the satisfaction of certain regulatory approvals and other customary closing conditions.

“Today is a re-founding moment for LinkedIn. I see incredible opportunity for our members and customers and look forward to supporting this new and combined business,” says Hoffman. “I fully support this transaction and the Board’s decision to pursue it, and will vote my shares in accordance with their recommendation on it.”

Microsoft will finance the transaction primarily through the issuance of new indebtedness. Upon closing, Microsoft expects LinkedIn’s financials to be reported as part of Microsoft’s Productivity and Business Processes segment.