[via BetaNews]

Microsoft announced Friday that its $120 million acquisition of Groove Networks had completed, just days after a Delaware court threw out a lawsuit by a former Groove executive to prevent the merger. Michael Matthews sued because he claimed the deal was unfair to the employees of Groove Networks.

As planned, Groove will join the Information Worker unit of Microsoft, which develops Office. “While Groove and Microsoft technologies already work together in very powerful ways, we’ve only just begun to realize opportunities to better address the needs of information workers at a time when the very nature of work itself is changing,” said Groove founder Ray Ozzie, now Microsoft’s Chief Technical Officer.