Mumbai: Google Inc., the world''s largest internet search engine, will acquire
e-mail security company Postini for $625 million to expand its services for businesses.
Carlos, California-based Postini is a closely held company that sells software
to encrypt and archive e-mail and instant messages. The acquisition is expected
to close by the end of the third quarter, the companies said in a statement.
supplies on-demand communications security and compliance solutions to more than
35,000 businesses and 10 million users worldwide.
said the deal could enable it provide organisations with more hosted services
similar to its Google Apps package, which includes its e-mail service Gmail, Calendar,
and Talk, its messaging service.
plans to use the technology to boost the security and compliance features of Google
Apps, its hosted suite of productivity applications.
Postini''s security software and Google''s Apps, corporations can use the software
without putting the onus on their administrators to install and maintain traditional
said Postini will become a wholly-owned subsidiary. The deal is subject to customary
closing conditions and is expected to close by the end of the third quarter.
is encouraging small businesses to adopt Gmail along with software for calendars,
spreadsheets and instant messaging. More than 100,000 business customers use the
Google Apps software suite, the company said.
is Google''s third-biggest acquisition since it agreed to buy DoubleClick Inc.
for $3.1 billion and completed a $1.65 billion purchase of YouTube Inc. in November.
of Postini should also give Google another leg up on rivals Yahoo Inc. and Microsoft
Corp., neither of who have made such strides in securing hosted software.