Groove Networks, the software company of Ray Ozzie, will be part of Microsoft soon, said Microsoft’s founder Bill Gates. Mr. Ozzie will also work for Microsoft.

Bill Gates declined to name the amount that will be paid for Groove. All 200 employees of the company will work for Microsoft. Groove Networks develops software intended for simpler cooperation by workers using desktop or portable computers, in the office or via Internet.

The company was founded in 1997 by Ray Ozzie who earlier designed Lotus Notes. Microsoft and Intel were the biggest shareholders of Groove. Groove was valued at $250 million in 2001.

Ozzie was also a developer of the first software spreadsheet, VisiCalc and worked for Software Arts.

"Ray and his team are true innovators. Microsoft and its customers will greatly benefit from their experience," said Bill Gates.

Mr. Ozzie is expected to be Microsoft’s chief technical officer.

The acquisition will help Microsoft launch its long-awaited Longhorn operating system as soon as next year, the company said.