Microsoft announced it plans to acquire Groove Networks. Groove was found in 1997 and develops p2p software allowing ad hoc workgroups to cooperate seamlessly in realtime.
The company will continue to run at its present location and its CEO and founder Ray Ozzie will become chief technical officer of Microsoft.
Groove's software complements Microsoft's SharePoint Services and SharePoint Portal Server. Groove has worked closely with Microsoft on its collaboration technologies since its founding. In October, Microsoft invested $51 million in Groove, acquiring a 20 percent stake in the ISV. Redmond, Wash.-based Microsoft later was part of $38 million investment in Groove after the company had layoffs and a restructuring. Overall, Groove has received $155 million in financing since its founding.