Accounting software giant Navision has accepted an offer from Microsoft to purchase the Denmark-based company for cash and stock valued at $1.33 billion.

Navision provides back-end software solutions to mid sized businesses with revenues from $5 million to $500 million through its software line, including Navision Attain®, Navision Axapta®, and Navision Financials®.

"Microsoft and Navision have had parallel lives, each with a deep belief in building long-term customer relationships achieved through lasting commitment to talented, value-adding partners," Microsoft Vice President Doug Burgum said in a press release.

"The combination of these two strong organizations with deeply similar values and approaches makes enormous strategic sense, and will create enhanced opportunities for partners and even more capable and affordable solutions for customers," Burgum said.

Together with its December 2000 acquisition of its Great Plains division, the acquisition of Navision will give Microsoft the opportunity to dominate the market in this segment.

Navision will become part of Microsoft's Business Solutions division, and will be Microsoft's largest product development center outside the United States. The acquisition provides a "key international foothold" for Microsoft, said Wells Fargo Securities analyst Jonathan S. Geurkink. About 86 percent of Navision's revenue comes from Europe, while about 85 percent of Great Plains comes from North America.

Navision is represented by Navision subsidiaries in 30 countries. Navision business management software products are marketed, sold, implemented and supported exclusively by Navision Solution Centers, a network of independently-owned value-added resellers. Today, there are more than 2,300 Navision Solution Centers around the world.