Kanata's AssetMetrix has been purchased by Microsoft, the world's largest software firm announced Wednesday from a summit in San Diego.

Through its AssetIntelligence service, AssetMetrix helps clients keep track of their IT assets, everything from computers to software programs, to help them make the best use of their IT dollars. Its vast library of application signatures helps companies track which software applications, and how many copies, are being used in their organization.

The six-year-old company entered into a partnership with Microsoft in 2004 that gave it access to the software giant's software partners distribution network. The objective was for AssetMetrix to demonstrate to Microsoft's partners the merits of upgrading to Windows XP.

On Wednesday, Felicity McGourty, director of product management in Microsoft's Windows and enterprise management division, told CNET News.com that AssetMetrix's technology will allow customers to better manage their software licences, especially for non-Microsoft products. It will be incorporated into Microsoft's upcoming System Center Configuration Manager.

CNET News.com was the U.S. news outlet that first reported the story.

Ms. McGourty said the acquisition is awaiting final Canadian regulatory approval.

In Ottawa, CEO Jeff Campbell would not disclose the terms or value of the deal, but did confirm AssetMetrix sold for more than the $5 million in venture capital that it had received since its founding.

AssetMetrix has about two-dozen employees who will remain through an integration period. Most of them are expected to join Microsoft's payroll with some heading to the company's Redmond, Wash. HQ.