(By Balachander) Microsoft Corp. (NASDAQ:MSFT) is acquiring Yammer, a provider of enterprise social networks for businesses, for $1.2 billion in cash.
Launched in 2008, San Francisco-based Yammer has over 5 million corporate users, also having raised $142 million in venture funding from top tier firms. Yammer's Software-as-a-Service (SaaS) solution is used by more than 200,000 companies to improve employee productivity and engagement.
Microsoft's latest deal is the latest enterprise software acquisitions focused around social media. Salesforce.com (NYSE:CRM) had earlier this month agreed to buy Buddy Media for $689 million in cash and stock to strengthen its boutique of software products that allow marketing in social networking sites such as Facebook, Inc. (NASDAQ:FB) and Twitter.
In May, Salesforce rival Oracle Corp. (NASDAQ:ORCL) agreed to purchase Vitrue after considering Buddy Media.
Looking ahead, Microsoft - the world's largest software maker - intends to accelerate Yammer's adoption alongside complementary offerings from Microsoft SharePoint, Office 365, Microsoft Dynamics and Skype.
Yammer's customers include Deloitte, Ford, Nationwide, 7-Eleven, Orbitz Worldwide, Rakuten, and Telefonica O2.
MSFT shares retreated 3.06 percent to trade at $29.76 on Monday.