Navision A/S has confirmed that it is considering a “strategic transaction,” after a story in Tuesday’s Financial Times (FT) newspaper reported that Microsoft Corp. is close to completing negotiations for the purchase of the Danish software company.

Microsoft is expected to pay about US$1.2 billion for the company, the FT said. It spent $1.1 billion on a U.S. business software developer, Great Plains Software Inc., last year. Both Navision and Great Plains develop business planning software for small and medium-size companies.

Navision has released a statement in response to the rumors, saying that it “can confirm that it is considering a possible strategic transaction.” Director of Corporate Communications S