About ten days ago, we reported that Yammer was in talks with Microsoft to discuss terms of an acquisition. While nothing had been confirmed, it certainly looked like the wheels were set in motion.

Today, we learn that Microsoft is going ahead with a deal to purchase the company for $1.2 billion. Of course, the acquisition is subject to the customary regulatory approval. No date has been mentioned for the closing of the deal.

Under the current terms of the deal,Yammer will continue to develop its standalone services and maintain a commitment to simplicity, innovation and cross-platform experiences. Microsoft plans to offer Yammer services alongside existing products like SharePoint, Office 365, Microsoft Dynamics and Skype.

Steve Ballmer, CEO of Microsoft comments on their plans to acquire Yammer:

“The acquisition of Yammer underscores our commitment to deliver technology that businesses need and people love,”

“Yammer adds a best-in-class enterprise social networking service to Microsoft’s growing portfolio of complementary cloud services.”

Yammer CEO David Sacks comments on joining the Microsoft team:

“When we started Yammer four years ago, we set out to do something big,”

“We had a vision for how social networking could change the way we work. Joining Microsoft will accelerate that vision and give us access to the technologies, expertise and resources we’ll need to scale and innovate.”

Yammer brings with them over five million verified customers including members from nearly 85% of the Fortune 500 companies. Yammer will officially be part of the Microsoft Office team, run by division President Kurt DelBene.