Posted - 06 March 2003 : 20:17:59
Microsoft Acquisition of Navision: Frequently Asked Questions
Q: Who is Navision?
A: Navision is a leading global provider of integrated business solutions for small and midmarket businesses. Based in Vedbaek, Denmark (near Copenhagen), Navision has more than 1,300 team members worldwide, more than 136,000 customer sites, distribution centers in more than 30 countries, and approximately 2,400 partners (called Navision Solution Centers) selling and supporting Navision products in more than 94 countries. Navision’s key products include Axapta and Attain, and its heritage solutions include XAL and C5.
Q: Why is Microsoft Corp. acquiring Navision?
A: The combination of Navision and Microsoft Great Plains Business Solutions will fuel global growth for Microsoft’s business application strategy. Microsoft and Navision have complementary product and geographic strengths, enabling Microsoft to compete in interconnected business solutions for small and midmarket companies.
Q: What are the benefits of this acquisition for customers, partners, employees and shareholders?
A: The many benefits are listed below:
Helping more customers realize their growth potential through technology. This investment builds on Microsoft’s and Navision’s strong shared commitment to helping small and midmarket businesses realize their growth potential through software, solutions and services.
Building on a deep heritage and continued commitment to partners. Microsoft’s investment in business applications together with the Microsoft® .NET business applications platform will create new opportunities for partners to bring new, high-value horizontal and vertical solutions to their customer base.
Shared vision, complementary strengths. Microsoft and Navision have complementary geographic and product strengths that accelerate the companies’ ability to grow in the highly competitive business applications market.
Commitment to markets where we do business. This acquisition significantly enhances Microsoft’s investment and presence in Europe, and Microsoft is committed to retaining investment in Denmark for product development and business operations.
Growth and new opportunities for Microsoft and Navision employees. Employees will have the opportunity to help shape the future of Microsoft Great Plains Business Solutions, one of the key pillar businesses for Microsoft.
Q: How much did Microsoft pay for Navision?
A: The acquisition is a stock and cash purchase and is valued at approximately $1.3 billion (U.S.).
Q: What is Navision’s target market and how does it compare to Microsoft Great Plains Business Solutions’ target markets?
A: Both Navision and Microsoft Great Plains Business Solutions have primarily targeted the small and midmarket segments, defined as businesses with annual revenues between
$1 million and $800 million.
Q: What is Microsoft’s business applications focus, and how does this acquisition relate to it?
A: Microsoft Business Solutions is focused on developing integrated, interconnected .NET business applications and bringing them to market through a world-class community of partners. Navision will join Microsoft’s Business Solutions division, bringing increased focus on building core midmarket and small-business applications in the areas of enterprise resource management, supply chain management, customer relationship management and analytics.
Q: How does Navision fit into Microsoft’s business applications and .NET strategy?
A: Navision has demonstrated significant skill in developing global object-oriented solutions (resulting in greater code reuse, faster time to market and ease of customization), as well as in developing vertical solutions (particularly in the areas of distribution and manufacturing). These skills, as well as Navision’s geographic and product strengths nicely complement the strengths of the existing Business Solutions team, and both Navision and Microsoft teams will work collaboratively to develop next-generation products and to develop and share best practices across product development, customer and partner services, and marketing.
Q: What is your product strategy based on this acquisition? How will you integrate the Microsoft Great Plains and Navision product lines?
A: We expect to continue investments across each of the individual product lines while combining our research and development efforts on the next generation of .NET solutions. As with any acquisition, specific information about product strategies and related investments will be identified during the integration and planning process.
Q: How will this acquisition affect relationships with enterprise application Microsoft partners such as SAP and Siebel?
A: Our efforts in the business applications space are focused on the small and midmarket business segments, not large enterprises. As we expand in this space and as a number of large-enterprise-focused companies move down market, we will compete in some areas and collaborate in others.
Q: How will Navision integrate organizationally within Microsoft?
A: Navision will become a part of the Microsoft Great Plains Business Solutions Division, led by Senior Vice President Doug Burgum, bringing together a unified team that will work collaboratively to develop next-generation products and share best practices across product development, customer and partner services, and marketing. Navision’s headquarters in Denmark will become the product development and operations center for Microsoft Great Plains Business Solutions in Europe, the Middle East and Africa (EMEA).
Q: What will happen to Navision locations outside of EMEA?
A: Other Navision locations will align to the existing Microsoft Great Plains organizational structure, with Navision’s North American subsidiaries aligning with Microsoft Great Plains’ North American operational team, and Asia-Pacific and Latin America aligning with Microsoft Great Plains’ emerging markets team.
Q: Will there be layoffs as a result of this acquisition?
A: As with most organizational mergers, we do expect there will be some redundancies across both Navision and Microsoft Business Solutions primarily in the areas where we have operational overlap. We don’t have the specifics about the scope at this time, but will be determining this as part of integration planning and will communicate details once we have them.
Q: What will the roles be of Navision’s current executive leaders?
A: Navision is led by co-CEOs Jesper Balser and Preben Damgaard. Upon the close of the acquisition, Jesper Balser will be director of global strategy, Microsoft Business Solutions, and Preben Damgaard will be director of EMEA operations for Microsoft Business Solutions, based out of Vedbaek, Denmark.
Microsoft Acquisition of Navision
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Erik van den Berg