The software giant has agreed to purchase all the assets of XDegrees for an undisclosed amount, according to a statement issued by the start-up software maker, which is based in California, USA. Some employees will relocate to Microsoft's headquarters, in Redmond, Washington.
A Microsoft spokeswoman declined to comment on any other details of the deal.
XDegrees makes software to let users securely gain access to and exchange information stored in enterprise computing systems. In November it announced that it had tuned its products to work with some of Microsoft's .net software, including the Passport single sign-on authentication service and the .net Alerts technology.
Founded in 2000, XDegrees was backed by venture capital firms Redpoint Ventures and Cambrian Ventures.