Microsoft has announced the purchase of office based social networking site Yammer, in a deal worth £1.2 billion.
The Yammer social network has been in operation for four years and has five million active users. The site operates like Facebook for communication within companies. Firms as large as automotive giant Ford and business services firm Deloitte currently use the networking site.
Microsoft will be hoping that the acquisition will make all of the companies software products more appealing to the commercial industry.
While the deal had been rumoured for a number of weeks, but this is the first official confirmation from either side of the deal. It is merely the latest in a series of acquisitions designed to make the Microsoft brand as relevant and desirable as possible.
Last year Microsoft purchased the communications business Skype and is currently integrating the video calls software into its products, including the Microsoft Office software package; which accounts for 60% of all Microsoft profits in the last year.
But Yammer does not envisage that the takeover will alter the way the service is provided or the business is run.
David Sacks, Chief Executive of Yammer 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."