After Redmond, Washington-based Microsoft invested $51 million in Groove Networks in 2001, many wondered when the software giant would buy the company reports Business Week. That day has arrived. Ray Ozzie, whose popular Lotus Notes software helped demonstrate the power of office PC networks in the early 1990s, has taken a post at Microsoft reports New York Times.

Microsoft said on Thursday that it would acquire Groove and its 200 employees and that Mr. Ozzie would become one of three chief technical officers at Microsoft. Groove Networks, develops software intended to permit simple collaboration by workers using desktop or portable computers, whether they are in the same office or connected via the Internet. Privately held Groove will become part of the Microsoft division that includes Office, as Microsoft expands its portfolio of programs that are part of that brand. The last major Office-related acquisition was Web-conferencing software and services provider PlaceWare in 2003 reports Reuters. 'The deal unites two top innovators of technology that help geographically distributed workgroups be as productive as those that work in a single physical location. Terms of the deal, which is expected to close in the second quarter, were not disclosed. In 2001, Groove was valued at about $250 million.