Microsoft has confirmed it has bought the office social network site Yammer for $1.2bn.
Yammer, which has five million users, operates like Facebook for communication within companies and is used by firms including motor giant Ford and business services firm Deloitte.
Microsoft hopes the acquisition will make its range of software products more appealing.
“The acquisition of Yammer underscores our commitment to deliver technology that businesses need and people love,” said Steve Ballmer, CEO, Microsoft. “Yammer adds a best-in-class enterprise social networking service to Microsoft’s growing portfolio of complementary cloud services.”
Last year Microsoft bought Skype and is integrating it into its products, including its Office software which contributed 60% of its profits last year.
Yammer’s chief executive David Sacks said: “When we started Yammer four years ago, we set out to do something big.
“We had a vision for how social networking could change the way we work. Joining Microsoft will accelerate that vision and give us access to the technologies, expertise and resources we’ll need to scale and innovate.”