Google to acquire Postini for $625 million

Share this content:

Online giant Google Inc. has signed a definitive agreement to acquire communications security and compliance firm Postini for $625 million in cash.

Under the terms of the agreement, which is subject to working capital and other adjustments, Postini will become a wholly owned subsidiary of Google. The agreement is subject to customary closing conditions and is expected to close by the end of the third quarter 2007. The acquisition represents Google's focus on its hosted Web applications for businesses.

"I think that the acquisition really does reaffirm our commitment to delivering a hosted application to businesses," said Dave Girouard, vice president and general manager at Google Enterprise. "We've seen a big amount of interest from large businesses, which is part of what is driving the acquisition of Postini. Google has always been focused on the end-user experience, and in bigger business security and compliance is a must."

The Postini services, which include Email Security, IM Security, Web Security, Message Archiving, Message Encryption and Policy-enforced TLS, will now be available on Google Apps, which is compromised of Gmail, Calendar, Talk, Docs & Spreadsheets, and Personal Start Page.

Google will gain access to Postini's 35,000 clients and Postini to Google's 100,000 clients. There is very little crossover between the two audiences, according to Mr. Girouard. Even though cross-platform integration will be offered, clients can contract each firm individually. Google will continue to support Postini customers and invest in Postini products.

Postini will keep its name and offices in San Carlos, CA ûclose to Google's headquarters in Mountain View, CA.

"Both companies share the same vision of building highly scalable Web-based applications," said Quentin Gallivan, president/CEO of Postini. "This merger will create the next generation in on-demand services."

Loading links....
close

Next Article in Email Marketing

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here