Microsoft on Monday confirmed rumors by saying it had a pending deal to acquire remote sensor maker Vexcel. The buy would improve the company's digital mapping efforts. Microsoft said in a statement that Vexcel's technologies would be used to "deliver a dynamic immersive digital representation of the real world."

The Boulder Daily Camera, a newspaper in the company's Colorado hometown, first reported news of the acquisition on Friday. That news quickly spread to several Web logs, although the company held off on confirming the merger until Monday. Vexcel, which has been around since 1985, currently has 131 employees.

The company's headquarters would stay in Boulder, the orginal report said, however it did not disclose if it would adopt the Microsoft name. The company specializes in several different types of mapping technologies and services.

Its premier product is the UltraCam, a large-format aerial camera that is "radiometrically and geometrically superior" to conventional film cameras, however cheaper to operate.

Microsoft is in the midst of a battle for supremacy in mapping services. The company's strongest competitor is Google with its Google Earth service: however, in recent months new services like those from Ask.com have thrown their hat into the ring.

Financial terms of the deal were not disclosed, and the acquisition is not completed pending regulatory approval from both the United States and Europe.