Microsoft buys Yammer for $1.2 billion in cash

Redmond-based Microsoft Corp. announced on its website today that it will acquire Yammer Inc., an enterprise social network provider, for $1.2 billion in cash.

Yammer will join the Microsoft Office Division, led by division President Kurt DelBene, and the team will continue to report to current Yammer CEO David Sacks, according to a press release on the Microsoft website.

"The acquisition of Yammer underscores our commitment to deliver technology that businesses need and people love," Microsoft CEO Steve Ballmer said in the release. "Yammer adds a best-in-class enterprise social networking service to Microsoft's growing portfolio of complementary cloud services."

Yammer launched in 2008 and now has more than five million corporate users, including employees at 85 percent of the Fortune 500. The service allows employees to join a secure, private social network for free and allows companies to convert a grassroots movement into companywide strategic initiative.

Yammer will continue to develop its standalone service and maintain its commitment to simplicity, innovation and cross-platform experiences, the press release states. Moving forward, Microsoft plans to accelerate Yammer's adoption alongside complementary offerings from Microsoft SharePoint, Office 365, Microsoft Dynamics and Skype.

"When we started Yammer four years ago, we set out to do something big," Sacks said in the release. "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."

The acquisition is subject to customary closing conditions, including regulatory approval.

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