Microsoft buys Visio for $1.3bn

Microsoft has bought graphics and technical-drawing company, Visio, for $1.3bn, the software giant is paying for the deal with a share swap.

Jeremy Gittens, group marketing manager for business productivity division, said "Visio and Office go well together. We believe diagrams will become increasingly important for corporates, thanks in part to the Web."

Gittens said the company was not expecting any problems from the regulators.

Shareholders of Visio will get 0.45 of a Microsoft share for every Visio share they hold.