Microsoft will buy Groove Networks which was founded by the creator of IBM’s Lotus Notes.
Microsoft is buying provider of collaboration software for the “virtual office”, Groove Networks.
Financial terms of the acquisition have not disclosed.
“The acquisition of Groove complements Microsoft’s collaboration offerings to include real-time, server-based and peer-to-peer solutions that address the ever-changing and more-complex work environment,” said Jeff Raikes, group vice president of Microsoft’s Information Worker Group. “Together, Microsoft and Groove will make anytime, anywhere collaboration a more natural and easy extension of how information workers coordinate their projects and document- centric work.”
The acquisition also brings to Microsoft the development talent and technology leadership of top Groove executives, including founder Ray Ozzie, a creator of IBM Corp.’s Lotus Notes. Ozzie will assume the role of chief technical officer, reporting to Bill Gates, Microsoft founder, chairman and chief software architect, with responsibility for influencing corporatewide communication and collaboration offerings and associated platform infrastructure. Ozzie also will continue his work with the Groove team, which will be part of Microsoft’s Information Worker Group.
“Ray and his team are true innovators. Microsoft and its customers will greatly benefit from their experience,” Gates said. “After working with Ray for years as a close partner, it will be great to have him on our senior leadership team.”
“We developed Groove’s highly security-enhanced virtual office technology to help businesses and individuals — wherever they are, whenever they work — overcome the challenges presented by today’s increasingly decentralized work environment,” Ozzie said. “By joining forces with Microsoft, we can more effectively address the needs of information workers for collaboration solutions that ‘just work’ across organizational, geographic and network boundaries.”
The acquisition is expected to be complete in the second quarter of 2005. Microsoft and Groove plan to provide customers and third-party partners with uninterrupted product and service offerings. Groove will continue to operate as a separate company until regulatory requirements have been met and the acquisition is finalized.
Murdok | Breaking eBusiness News
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