Microsoft makes bid for Fast Search
Microsoft Corp. bid $1.2 billion on Tuesday to buy Norwegian business search software company Fast Search & Transfer in a deal focused on helping corporations manage and sift through their own files, a growing market also targeted by Google Inc.
The world’s largest software maker offered to pay a 42% premium for Fast, the second-largest provider of search technology that lets companies comb internal corporate documents, data and other information. Fast also sets up a search engine used by companies to help consumers navigate their websites easier.
Fast said its board unanimously recommended that shareholders accept the Microsoft offer.
“The problem businesses have around the world is they generate lots of files and they don’t know where they put them,” said Kim Caughey, senior equity analyst at Fort Pitt Capital, which holds about 203,000 Microsoft shares. “Microsoft has had desktop search for a while, but it really does need a more corporate approach to tracking and storing.”
In recent years, larger technology industry players such as Google, Microsoft and IBM Corp. have started to move into the corporate, or enterprise, search market. This has led to a flurry of acquisition activity.
Shares of Fast, which were suspended all day Monday, jumped to the bid level of 19 kroner per share and then eased off to 18.80 kroner.
The bid price is 42% higher than Fast’s closing share price Friday.
Shareholders with 37% of Fast’s stock, including its two biggest institutional investors, Norway’s Orkla and Hermes Focus Asset Management Europe, have agreed to accept the offer, according to Microsoft and Fast.
The deal would spread Fast’s search technologies more widely around the world, Fast Chief Executive John Lervik said. Fast posted a third-quarter loss of more than $100 million on revenue of nearly $36 million. Its clients include Dell Inc. and Walt Disney Co.
Microsoft shares fell $1.16 to $33.45.
The deal is subject to regulatory and shareholder approval. Microsoft expects the transaction to be completed in the second quarter.
