NEW YORK ( TheStreet) -- Microsoft's (MSFT - Get Report) $1.2 billion acquisition of Yammer may have been Silicon Valley's worst-kept secret, but still represents shrewd business by the lumbering software giant.
Yammer, which competes with the likes of Jive Software and Salesforce.com's (CRM - Get Report) Chatter product, touts hot technology for building enterprise social networks. The San Francisco-based firm has 5 million corporate users, including employees at 85% of the Fortune 500, and is deployed in more than 200,000 businesses. Consulting company Deloitte, for example, has rolled out Yammer to 190,000 employees.
Microsoft, in a statement released Monday, confirmed that Yammer will join its Office division, outlining an integration plan for the social enterprise specialist. "Moving forward, Microsoft plans to accelerate Yammer's adoption alongside complementary offerings from Microsoft SharePoint, Office 365, Microsoft Dynamics and Skype," said the Redmond, Washington-based firm, in a statement."We view the move as strategic, complimentary, and market-expanding for Microsoft," said Rick Sherlund, an analyst at Nomura Equity Research, in a note. "
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