Microsoft to buy search vendor FAST
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Software giant has agreed to acquire Norwegian search firm FAST for US$1.2 billion...
Microsoft has announced a $1.2 billion bid for Norwegian enterprise search technology vendor FAST. The price represents a 42% premium on the company’s share price as of January 4th.
“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, the head of Microsoft’s Business Division, of the acquisition.
The acquisition comes at a good time for the Norwegian company. In August 2007 the company reported a loss of US$37.8 million for its third financial quarter, having been profitable the year before. This, combined with accusations of accounting irregularities from competitor Autonomy, triggered a sharp decline in the company’s share value.
Although the price Microsoft has agreed seems generous, it perhaps reflects FAST’s potential in the near future. Despite its recent troubles, the company has US$195 million in the bank, and predicts organic growth of 30% in 2008.
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