Microsoft Corporation is reportedly in the final stages of negotiations to acquire FireFly Network Incorporated, according to sources close to the two companies. A deal is expected within the next week. FireFly makes a suite of products that allow Web sites to customize content to specific users' preferences; the company was one of the first to deliver on Internet personalization technology. FireFly is also active in promoting Internet privacy.

Should the deal occur, Microsoft will likely integrate FireFly's core technology into Site Server or Internet Information Server, its Web server software. Neither company will discuss the talks at this time