Google has announced it will acquire Postini for US$625 million, making the e-mail security company a wholly owned subsidiary when the deal is completed in late 2007.
Since February 2007 Google has sold Postini's archiving and security products under the Google Apps Premier Edition.
The acquisition will boost Google's suite to include hosted e-mail and instant messaging security, encryption and, importantly, an archiving solution that extends its reach in the lucrative US compliance and e-discovery markets.
Eric Schmidt, chairman of the board and CEO of Google said, "We're reinforcing our commitment to delivering compelling hosted applications to businesses of all sizes. With the addition of Postini, our apps ... [can] streamline the complex information security mandates within these organisations."
Until now Google's lack of an enterprise archiving solution excluded it from the enterprise content management (ECM) market at a time that Microsoft is making significant inroads with SharePoint 2007.
Dave Girouard, Vice President and general manager, Google Enterprise said, "Large businesses have been reluctant to move to hosted applications due to issues of security and corporate compliance. By adding Postini products to Google's technology, businesses no longer have to choose ... and the company achieves the security and assurance it needs."
Postini's Web site boasts it serves 35,000 businesses and 10 million users worldwide. Postini was also positioned in the Leaders Quadrant in Gartner's "Magic Quadrant for E-mail Security Boundary", 2006.