Microsoft said Monday that it had entered into an agreement that will lead to the acquisition of mobile music provider Musiwave.

The company says that the buy builds upon its commitment to deliver a vision of 'Connected Entertainment' to consumers. It adds a mobile component to music services that are already offered through its Zune music device, Windows Mobile, and on the desktop.

"Musiwave would bring key assets to us as we continue to bring our vision of Connected Entertainment to life," Microsoft's music chief J Allard said in a statement.

According to recent studies on the mobile music space, over 1 billion mobile phones with music capabilities are expected to be shipped by the beginning of next decade. This provides a significant user base for companies like Microsoft to tap into.

Musiwave's software is already found on many handsets sold in Europe, and its likely with this acquisition that the company's software will begin appearing on handsets in the US and elsewhere.