Microsoft will acquire company behind 'group chat' application

Microsoft Corp. says it has agreed to acquire Parlano, the Chicago company behind the MindAlign "group chat" application -- a text-based program that lets people in different locations inside a company communicate in an on-screen chat room.

The Redmond company says it will incorporate the technology into its Microsoft Office Communications Server and Office Communicator software.

Financial terms of the deal weren't disclosed.

Parlano has about 50 employees, and an unspecified number will join Microsoft in Redmond, the companies said. The deal is expected to close in the fourth quarter.

MindAlign originated inside financial services firm UBS, before it was spun out, said Jeff Schultz, Parlano's senior vice president of worldwide marketing.

Whereas stock traders in the past would have been in the same location, making it possible to yell across a room, it's now necessary for groups in different locations to communicate in much the same way, virtually.

Parlano's Web site lists financial services customers including ABN-AMRO, Putnam Investments, Cantor Fitzgerald, UBS and the Royal Bank of Scotland.

Although Parlano's software could previously be integrated with Microsoft's communications programs by interested businesses, Microsoft has seen demand for group chat functions to be built natively into its programs, said Eric Swift, a senior director in Microsoft's Unified Communications Group.

Microsoft's unified communications programs combine functions of instant messaging, phone calls, conferencing and other features. Microsoft says the group chat function will be offered as part of the standard license for its upcoming Office Communications Server 2007 program.