Microsoft, of course, acquired the maker of Minecraft proper, Sweden-based Mojang, for $2.5 billion in September 2014.
MinecraftEdu, which offers a "school-ready remix of the original smash hit game Minecraft", is used in over 7,000 classrooms in more than 40 countries.
So what happens next? From the announcement:
"Today, we’re excited to announce Microsoft is acquiring MinecraftEdu and investing in a new and expanded version of Minecraft for the classroom called Minecraft: Education Edition.
This new title – available as a free trial this summer – will build on the learnings from MinecraftEdu while offering an expanded set of features. And in support of MinecraftEdu customers, they can continue to use MinecraftEdu and we will offer the first year of Minecraft: Education Edition for free."
Terms of the deal were not disclosed, but it's important to note Microsoft is not acquiring Teacher Gaming outright, only the MinecraftEdu product.