Microsoft agrees to acquire Norway's FAST Search

Software giant Microsoft Corp. announced Tuesday that it has agreed to buy Norwegian Internet search software firm Fast Search & Transfer for 6.6 billion kroner ($1.23 billion), a move that would Redmond mammoth’s enterprise search efforts.

The world’s leading software company said in a statement through the Oslo Stock Exchange that it will pay 19 kroner for each Fast Search share. The offer price represents a 42 percent premium to Oslo-based company’s January 4 closing price.

Fast's board of directors has unanimously recommended that its shareholders accept the offer. In addition, shareholders with a total of 37 percent of Fast's stock, including its two biggest institutional investors- Orkla ASA and Hermes Focus Asset Management Europe- have agreed to accept the offer.

“Enterprise search is becoming an indispensable tool to businesses of all sizes, helping people find, use and share critical business information quickly,” said Jeff Raikes, President of the Microsoft Business Division. The combination of Microsoft and FAST gives customers a new choice: a single vendor with solutions that span the full range of customer needs.”

The deal is still subject to approval from shareholders representing more than 90% of Fast's shares. The transaction is expected to be completed in the second quarter of 2008.

Microsoft's sales and marketing network will give Fast significant boost to grow rapidly, John Lervik, CEO of Fast said. "This acquisition gives Fast an exciting way to spread our cutting-edge search technologies and innovations to more and more organizations across the world," Lervik said.

The acquisition of Fast would strengthen Microsoft's research and development presence in Europe, complementing existing research teams in Cambridge, England, and Copenhagen, Denmark, with novel and distinctive capabilities in Norway.

Founded in 1997, FAST creates the real-time search and business intelligence solutions that are behind the scenes at the world's best-known companies with the most demanding information challenges.

Headquartered in Norway, the FAST Group operates globally with presence in Europe, the United States, Asia, Australia, the Americas, and the Middle East. The company had reported sales of $163 million and posted a profit of $3.5 million in 2006.

Founded in 1975, Microsoft is the worldwide leader in software, standing firm on their mission to provide top-tier technology, deliver great software and reliable services.

Shares in Fast Search rose 41.6% to 18.90 kroner in Oslo, while Microsoft shares slipped under a percentage point in Frankfurt.