Facebook Purchase of Instagram Is Official Statement via FB Post

Facebook and Instagram integration is now official, expect fast sharing of photos with your friends and family. Kevin Systrom and Mike Krieger (major share holders in Instagram) are likely to work with Facebook to make sure that the future of Instagram will continue and prosper. “I'm psyched for the next chapter of this long journey. 

I want to personally thank everyone in the Instagram community for the last two years of inspiration. Here’s to the next two as well!” Systrom post on Facebook.
Facetagram Facebook and Instagram

Facebook Announce Instagram Purchase

"As we said from the beginning, we are committed to building and growing Instagram independently. Instagram will continue to serve its community, and we will help Instagram continue to grow by using Facebook’s strong engineering team and infrastructure. We also can’t wait to work with the talented Instagram team to improve the mobile experience." Facebook Blog Post:

Let’s just expect more photo tagging and photo import from Facebook to Instagram. Welcome Facetagram! (source)