Microsoft has acquired AVIcode, a market leader in application performance monitoring and diagnostics of .NET applications and services, the companies announced.

AVIcode will become a wholly owned subsidiary of Microsoft and will continue to fulfill its existing commitments to customers, Microsoft said Wednesday on a new Pathways website devoted to the AVIcode deal and transitioning customers.

"AVIcode and Microsoft share a common vision about the evolution of application performance management and monitoring and the ever- growing need for organizations to gain 360-degree visibility into both application behavior and user experience," AVIsoft CEO Mike Curreri said in a blog post Wednesday evening on the AVIcode site.

"AVIcode products will be integrated with System Center’s licensing model to enable customers to take advantage of a flexible, cost-effective and simple approach to purchasing management capabilities," Microsoft said on the Pathways site.

The software gian added, "AVIcode’s product capabilities help ensure the availability of business-critical applications and services, regardless of where they are deployed. As more customers move to consuming cloud-based services, Microsoft will address concerns about the gap between existing applications and those designed for the cloud by providing unified management across physical, virtual and cloud environments."

Neither company disclosed financial terms of the deal.

AVIcode had been held by Southern Capitol Ventures in which Capitol broadcasting, parent of LTW, is an investor.

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