Skype agreed to acquire the New York-based start-up GroupMe, a move that gets the internet calling giant into the increasingly crowded business of providing group messaging services on smartphones, The Wall Street Journal reported Monday.

GroupMe’s application lets users text and make conference calls with circles of friends or colleagues.

The start-up won a following but faces growing competition from technology heavyweights like Apple, Google and Facebook, which are rolling out new smartphone messaging services that include group messaging. The competition led some entrepreneurs and investors to say that it was a good time to sell the company.

The one-year-old company, which raised $11.5 million from Lerer Ventures and other venture capital investors, was purchased for around $80 million, one person familiar with the matter said.

To read more, go to The Wall Street Journal