Microsoft seals deal for Navision
Published: 07 May 2002 16:29 BST
Microsoft will pay $1.33bn for Danish software company Navision, the companies said Tuesday.
Navision develops what is known as back-end software, which helps companies manage business affairs such as human resources, accounting and customer relationships. It competes against software giants such as SAP and Oracle for larger enterprise customers, and against Microsoft's Great Plains division in the market for smaller and mid-sized accounts.
"Microsoft and Navision have had parallel lives, each with a deep belief in building long-term customer relationships achieved through lasting commitment to talented, value-adding partners," Microsoft vice president Doug Burgum said in a press release
"The combination of these two strong organisations with deeply similar values and approaches makes enormous strategic sense, and will create enhanced opportunities for partners and even more capable and affordable solutions for customers," Burgum said.
Microsoft had been rumoured to be considering the Navision purchase for some time. Great Plains, which Microsoft acquired last year, makes similar software but is focused mainly on the US market.
Navision will become part of Microsoft's Business Solutions division, and its corporate headquarters in Vedbaek, Denmark, will become the centre of development and operations for Microsoft Business Solutions in Europe, the Middle East and Africa. It will be Microsoft's largest product development centre outside the United States.
Jesper Balser, co-chief executive of Navision, will become director of global strategy at Microsoft. Co-chief executive Preben Damgaard will be director of EMEA operations for Microsoft Business Solutions.
Shares in SAP fell 4 percent in overseas trading on Tuesday in reaction to Microsoft's move.
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