Microsoft set to swoop for Navision

Although neither company would comment on the deal, a statement filed with the Copenhagen Stock Exchange, where Navision is listed, said its shares had been transferred to an ‘observation list’ as the company ‘considers a possible strategic transaction’.

According to business software analyst Dennis Keeling, a merger of Microsoft and Navision would significantly impact on the financial software market for SMEs.

‘If the interested party is Microsoft this would be a significant problem for the industry as it has already acquired Great Plains in the US,’ he said.

Keeling singled out Navision’s enterprise wide mid-range product – Axapta – as software set for ‘international deployment’ adding that it was ‘ideally suited to Microsoft’s .NET strategy’.

But Sage dismissed the possible deal as a threat to its market position.

Sage finance director Paul Harrison told Accountancy ‘We expected it’, but was quick to add that there was little competitive overlap as ‘Sage serves different customers.’

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