Microsoft has signed a deal to buy the "technology and talent" of Israeli touch screen technology firm N-trig, the company confirmed on Friday.
The deal will involve the U.S. computer giant buying N-Trig's stylus pen and touch-screen technology.
The Israeli company's technology is already used in Microsoft's Surface Pro 3 tablet and could be used with other devices.
Microsoft already has a 6.08 percent stake in N-trig, which filed a prospectus for an initial public offering on the Tel Aviv Stock Exchange last year.
N-trig's employees will remain in the company's Kfar Saba, Israel, facility, but a source with direct knowledge of the situation said that eventually some could relocate to Microsoft's Redmond, Washington, headquarters.
The deal is a continuation of Microsoft's recent buying spree and marks the third acquisition of an Israeli company in six months, following cybersecurity company Aorato last year and text analytics firm Equivio in January.
Microsoft has been gearing up for the release of the hotly anticipated Windows 10 operating system and many of the acquisitions made over the past year have tied in with that. The acquisition of calendar app Sunrise earlier this year, for example, highlights Microsoft's push to market Windows 10 as an operating system optimized for business across mobile.