Google announced on Monday that the company had signed a definitive agreement to buy Internet messaging security firm Postini for $625 million in cash.
The acquisition would allow Google to offer e-mail and instant-messaging security as well as archiving and encryption services without requiring customers to purchase additional hardware. The offerings fit right into Google's current line-up of hosted applications, such as GMail, Google Calendar and Google Docs & Spreadsheets, Dave Girouard, vice president of Google Enterprise, said in a statement.
"The response to Google Apps has been tremendous, with more than 1,000 small businesses signing up for the service every day," Girouard stated. "At the same time, large businesses have been reluctant to move to hosted applications due to issues of security and corporate compliance."
Postini is not the first security firm to be purchased by Google this year. In May, Google bought Internet browser security firm Green Border for an undisclosed sum. Other technology titans have also purchased security companies this year. In June, IBM purchased Web application security company Watchfire, and Hewlett-Packard acquired Web security firm SPI Dynamics.
The deal will likely close in the third quarter, according to Google, pending regulatory and board approval.
Posted by: Robert Lemos