Microsoft Makes Another SMB Acquisition

Microsoft's planned purchase of privately held Sales Management Systems marks the third acquisition the software giant has made in the SMB software space since January 2001, when it acquired Great Plains for $1.1 billion. Earlier this month, Microsoft also agreed to buy Navision, a Danish SMB software vendor, for $1.3 billion.

Financial terms of the deal were not disclosed. SMS was started in 1995, specializing in Windows-based point of sales software for the "ubiquitous generic PC." The small Anaheim, Calif.-based software company has had strong ties with Microsoft and is a Microsoft Certified Solution Provider. SMS' QuickSell product line has also won numerous industry accolades, including Microsoft's Retail Application Developer Awards.

"We're excited about extending QuickSell's buying histories, inventory, purchasing and other integration points to Microsoft Great Plains' business management applications," said Cung Phan, president of SMS, in a statement Sunday. "QuickSell resolves SMB retailers' information needs and ensures compatibility with industry standards and Web connectivity."

Microsoft plans to offer a solution that integrates SMS' QuickSell series of POS and retail management applications with its Microsoft Great Plains financial management applications, rounding out a more complete SMB solution. Microsoft says the QuickSell series will also leverage Microsoft .Net, Microsoft SQL Server and the Microsoft XML Web services platform.

Microsoft says its acquisition of SMS "will open new opportunities for Microsoft partners in the reseller channel, the development community and the original equipment manufacturer sector." The company also stated that SMS QuickSell applications will continue to be available as stand-alone solutions. QuickSell 2000 pricing starts at $990. The integration with Microsoft Great Plains Dynamics and Small Business Manager will be available in the third quarter of 2002 in North America and will start at $2,285.

Microsoft officials did not comment on whether or not SMS personnel and operations will be retained by the Microsoft Business Solutions division. The software giant integrated the majority of Great Plains, which is now the Microsoft Great Plains Business Solutions Division, and plans to do the same with Navision.

In a short time, Microsoft has become one of the dominant software forces in the SMB solutions market. Along with its in-house products such as Microsoft Office, the company has used its vast cash reserves--more than $38 billion--to make strategic acquisitions such as Great Plains and Navision.