Microsoft is acquiring Delphi technologies and its software solutions team, its chief executive officer said Tuesday.

The acquisition will be made at a cost of $1 billion, according to the announcement from Phil Harrison, who also serves as chief executive of Microsoft.

Delphi has been in business since 1985 and was one of the most successful software solutions companies in the world, with revenue of more than $20 billion last year, according a company website.

The deal is expected to close in the first quarter of 2019, Harrison said in the announcement.

The sale is expected “to help us continue to grow our global cloud business and create new opportunities to deliver world-class customer experiences across our various platforms,” Harrison said.

Delphias cloud services company, which has about 20,000 employees worldwide, has a portfolio of more of Microsoft’s cloud services, including Exchange Online and SharePoint Online.