Microsoft offers $1.2bn for Fast

Offer confirmed today for European search firm

Microsoft is to make a cash offer to acquire Fast Search & Transfer, a Norway-based provider of enterprise search technology.

The Redmond giant will make a cash tender offer of 19 Norwegian kroner per share, valuing the firm at 6.6 billion kroner or roughly $1.2bn.

Fast Search & Transfer's board of directors has unanimously recommended that shareholders accept the offer.

Microsoft reported that shareholders representing an aggregate 35 per cent of the outstanding shares have "irrevocably undertaken" to accept the offer. The transaction is expected to be completed in the second quarter of 2008.

"Enterprise search is becoming an indispensable tool to businesses of all sizes, helping people to find, use and share critical business information quickly," said Jeff Raikes, president of the Microsoft Business Division.

The acquisition also increases Microsoft's research and development presence in Europe, complementing existing teams in England and Denmark with new and significant capabilities in Norway.

The offer will be subject to the customary terms and conditions, including receipt of acceptances representing more than 90 per cent of Fast Search & Transfer's shares and voting power on a fully diluted basis, and receipt of all necessary regulatory approvals on terms acceptable to Microsoft.