Microsoft is acquiring Multimap, a UK-based online map service, for an undisclosed sum. As a result of the acquisition, the London-based tech firm will become a wholly-owned subsidiary of Microsoft and part of the Online Services Group. The US software giant says the new acquisition will provide it with new location and mapping technology, which will help it improve its Virtual Earth, Live Search and Windows Live services. "This acquisition will play a significant role in the future growth of our search business and presents a huge opportunity to expand our platform business beyond the UK and globally," claims Sharon Bayley, general manager of the Online Services Group at Microsoft.

The latest deal helps Microsoft reach its goal of acquiring at least 20 companies a year, a goal announced by Steve Ballmer last month at the Web 2.0 Summit in San Francisco. Baller said the US internet and software firm would spend "anywhere between 50m and 1bn bucks" on each purchase, with the aim of adding new products and services to its portfolio. As a result, it is thought that 2008 will be the first year in which Microsoft will spend more on acquisitions than R&D.