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Microsoft moves in Fast on internet search
…to give customers "new choice"

By Reuters

Published: Wednesday 09 January 2008

Microsoft has offered to buy Norwegian internet-search software firm Fast Search & Transfer for about $3.54 per share, valuing it at about $1.2 billion, the companies said.

Fast Search & Transfer (Fast) said in a statement: "Fast's board of directors has unanimously recommended that its shareholders accept the offer."

Fast said: "This offer represents a 42 per cent premium to the closing price on 4 January [the last trading day prior to this announcement] and values the fully diluted equity of Fast at 6.6bn Norwegian crowns or approximately $1.2bn."

Shareholders with 37 per cent of Fast's stock, including its two biggest institutional investors - Norway's Orkla and Hermes Focus Asset Management Europe - have agreed to accept the cash offer, the companies said.

Analyst Erik Hjulstroem at Kaupthing Bank said: "The bid is fair. There can always be another [rival offer] but I believe Microsoft will get it for 19 crowns a share."

The deal is subject to regulatory approval and acceptance from shareholders with more than 90 per cent of Fast's shares, Fast Search & Transfer said.

Microsoft said in a statement the transaction is expected to be completed in the second quarter of 2008.

Jeff Raikes, head of the Microsoft Business division, said in a statement: "Enterprise search is becoming an indispensable tool to businesses of all sizes, helping people to find, use and share critical business information quickly."

He said: "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 companies have a number of complementary strengths that help businesses deliver productivity and improved results, Microsoft said.