CloudOn is a developer of tools to simplify creating and editing documents on mobile devices.
Financial details were not disclosed but money is believed to have changed hands.
CloudOn will become Dropbox’s first Israeli office and will focus on R&D. Dropbox plans to hire more engineers in Israel following the purchase.
Dropbox is waxing lyrical about what CloudOn brings to the company. It says that the CloudOn team will help build collaboration capabilities into Dropbox.
This means that Dropbox might be moving into end user content creation tools. So far it has Mailbox, a mobile email client, and Carousel, a mobile image viewing application. But nothing like compare to Google Docs or Microsoft’s mobile Office.
CloudOn customers have been told that the service will shut down in the next two months and that no new users will be accepted after today.
What is not clear is where this leaves Dropbox’s developing relationship with Microsoft.
In November, Dropbox teamed up with Microsoft to allow Office software users to manage and share files through Dropbox’s website and mobile app.
Microsoft has its own file sharing solution, OneDrive and did not really need Dropbox. However if Dropbox is heading into application land, one wonders why either side would find a relationship attractive.