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Stepping up its fight against Microsoft Corp., Google Inc. acquired DocVerse, a technology startup that allows people to edit Microsoft Office files online.
Google paid around $25 million for the San Francisco-based company, according to a person familiar with the matter.
In an interview, Jonathan Rochelle, group product manager for Google Apps, said Google acquired DocVerse to make it easier for people to transition from desktop software to online software. The latter is an area where Google is trying to get a leg up over Microsoft, with its Google Apps service, which includes online word-processing and spreadsheet software. He declined to comment on the deal’s price.
Google will make DocVerse’s technology part of its Google Apps, Mr. Rochelle said, allowing users who upload Microsoft files into Google storage to edit and collaborate on them. Google also made the software, which carried fees for some types of usage, free and temporarily suspended new sign-ups.
The deal is one of around a half dozen acquisitions that Google has announced since the end of 2009. Other deals include AppJet, which also makes collaboration software, and mobile advertising company AdMob.
DocVerse was founded two and a half years ago by two former Microsoft employees, Shan Sinha and Alex DeNeui. The company has raised about $1.5 million in venture financing from Baseline Ventures and others. In addition to allowing people to do things like edit PowerPoint slides online, it also allows users to comment on documents online and display those comments visible to other users.
In an interview, Mr. Sinha said DocVerse was excited to help foster Google Apps as an effective service for collaborating across different files types. While noting that Microsoft is also developing ways for people to collaborate on files online, he said Google is “better positioned to reinvent Web-based business software” than Microsoft and executing “more effectively and quickly.”
A Microsoft spokeswoman said in a statement that Google’s DocVerse deal acknowledges that “customers want to use and collaborate with Microsoft Office documents.” The statement continued to say that “businesses around the world” are using Microsoft’s collaboration service, SharePoint, citing Coca Cola Enterprises, Kraft and Volvo as examples.
Separately Friday, Google disclosed its top three executives will be paid $1 in compensation in the current fiscal year and will not receive bonuses, according to a filing with the Securities and Exchange Commission. The search giant’s Chief Executive Eric Schmidt and co-founders Sergey Brin and Larry Page also were paid $1 and took no stock, stock options or bonus in 2008. By JESSICA E. VASCELLARO.in online.wsj.com
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