Microsoft acquires Vicinity Corporation

Microsoft Corporation has announced that it will acquire Vicinity Corporation, a location technology company, for $96 million cash US. Vicinity, of Sunnyvale, California, develops technology that enables users of wireless mobile devices (i.e., cell phone, PDA) to determine their location and find nearby businesses and addresses with these devices, without having to stop to consult a map. Microsoft says Vicinity will be a good fit with Microsoft's MapPoint business. Microsoft estimates that the merger will be completed by March 2003.

Microsoft made this announcement the same day it launched its first mobile phone software product. Orange, a French wireless company, is using Microsoft's software on a "smart" cell phone that features a large-sized phone color screen with sound, video and pictures, as well as a camera attachment and wireless email.