According to financial news website Calcalist, the 190 people who work for N-trig will work for Microsoft’s Israeli division.
N-trig makes pens for use in smartphones, for tablets and for slim notebooks.
Microsoft already owned a 6.1 percent chunk in N-Trig to incorporate its pen in the Surface Pro 3 tablets it makes.
Reuters said N-trig revenues in the first half of 2014 amounted to $20.6 million. Its customers include Sony, HP, and Lenovo.
Microsoft is keen to re-position itself in the next wave of the IT market.