Adobe has signed a definitive agreement to acquire application developer Virtual Ubiquity and its Buzzword online word processor.

The acquisition will form part of Adobe's strategy for internet application development built on its Adobe Integrated Runtime (Air) platform.

Buzzword was built with Adobe's Flex software and runs in Flash Player, allowing individuals to collaborate on documents.

The application will also run on Air, offering users a hybrid online/offline experience and the ability to work with hosted and local documents.

"We were inspired by the way today's youth spend their lives working and playing together online, and how this is influencing the way we all think about collaboration," said Rick Treitman, chief executive at Virtual Ubiquity.

"This inspiration resulted in an online word processor for the 'Facebook generation' that focuses on working together online without sacrificing quality. "

David Mendels, senior vice president of the Business Productivity unit at Adobe, added: "Buzzword will build on that leadership and enable fundamental improvements in how people collaborate on documents."

In separate news, Adobe has added file-sharing to its online document services. The Share beta service will allow users to share, publish and organise documents online, pushing Adobe into further competition with Google.