The report by AllthingsD that Yahoo was in the hunt for the Xobni, the maker of address book apps and plugins is true after all as Yahoo confirmed the deal on Wednesday. Xobni (which is pronounced Zob-nee and is “Inbox” spelled backwards), indexes a person’s emails and creates an address book, showing a profile of each contact, which can include a photo, job title and email history, as well as that contact’s posts on Social Networks.

“We know that Xobni products have woven their way deep into your daily life. Many of our product improvements have come as a result of your enthusiastic, detailed feedback. We often hear customers say “I couldn’t live without Xobni.” Not to worry — we aren’t pulling the rug out from under you.” said Xobni in a Blog post. ” If you’re using a Xobni product today, you can keep using it. To find out our plan for each product, please check out the FAQ. Of course, soon you’ll be able to use Yahoo! products with Xobni goodness baked right in.”

Kara Swisher says Yahoo! paid “$30 million to $40 million for the maker of address book apps and plugins.”