In the continuing battle between software behemoth Microsoft and search engine giant Google, Microsoft has acquired UK tech firm Multimap, to better compete with Google Maps. Although no figures have been disclosed, the deal is rumoured to be around $50 million.

Multimap will become part of the Virtual Earth and Search teams in Microsoft's Online Services Group, but will operate as a wholly owned Microsoft subsidiary.

Multimap already offer business-focussed location-based services, such as proximity searching and aerial images with map overlay, all available on web, mobile, PDA, kiosk, and iTV platforms. Multimap's asset tracking service for example locates assets in real time and can reverse geocode, to give an address from geographic coordinates which can be browsed to or sent as a text message.

Multimap can supply its application programming interfaces (APIs) to businesses allowing customisable client-side applications and also allowing firms to embed interactive location services into their own websites. A choice of interfaces can be delivered including Javascript, and a new Static API which works over dial-up and with non-Javascript browsers. The Web Services API gives a direct programming interface for integration into enterprise sites.

Microsoft signed a partnership agreement with Multimap in June 2004 to deliver Multimap's expertise through Microsoft's MapPoint Web service.