Microsoft Corp (NASDAQ:MSFT) is close to buying business software company Yammer Inc for more than $1 billion, according to a source familiar with the details.
Microsoft's interest in Yammer, known for its social networking functions, could allow the software giant to beef up its offerings for corporations.
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A Microsoft spokesman declined to comment. A representative from Yammer did not immediately respond to a request for comment.
Backed by PayPal co-founder and Facebook <FB.O> investor Peter Thiel, Yammer said it counts more than 80 percent of Fortune 500 companies as clients. It raised more than $140 million in venture capital funding.
Bloomberg, which first reported the deal, said the announcement about the transaction was expected at the end of June.