Microsoft Corp. acquired Overland Park-based PhoneFactor Inc. on Tuesday for an undisclosed amount.
PhoneFactor, founded in 2001, offers phone-based authentication systems that protect financial accounts from fraud.
Microsoft plans to use PhoneFactor to provide authentication services for its cloud and on-premises applications.
PhoneFactor CEO Tim Sutton declined to share current employment, but he said the company has grown substantially since its 50 employees in July 2010. He said all employees were given new job offers and, as far as he knows, everyone accepted. Sutton will continue to lead the operation in Kansas City, which will run as a subsidiary of Microsoft.