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Microsoft To Buy Interactive Display Developer Perceptive Pixel

Microsoft plans to acquire Perceptive Pixel Inc., a developer of large-scale, multitouch display solutions that gained prominence with CNN's interactive "Magic Wall" during the 2008 presidential election, for an undisclosed amount.

Terms of the deal were not disclosed. The acquisition is subject to customary closing conditions, including regulatory approval.

Investors in New York-based PPI include CNN, Intel, 3M and In-Q-Tel, the strategic investment arm of the CIA. Broadcasting and entertainment customers include ABC, ESPN, Bloomberg, CNN, Current TV, CBS Studios, NBCUniversal, The Weather Channel, Fox and Univision, according to the company's website.

"PPI's large touch displays, when combined with hardware from our OEMs, will become powerful Windows 8-based PCs and open new possibilities for productivity and collaboration," Kurt DelBene, president of Microsoft's Office Division, said in announcing the deal Monday.

PPI was founded in 2006 and shipped its first multitouch workstation and large wall solutions in early 2007. The company's technologies are used across various industries such as government, defense, broadcast, energy exploration, engineering and higher education.

Last month, Microsoft announced Surface, a new family of Windows 8-based tablets, set to ship later this fall. The Microsoft Surface devices, which feature 10.6-inch touchscreen HD displays, are aimed at competing with Apple's category-leading iPad.