Search engine giant Google Inc. (GOOG) said it agreed to acquire Postini for $625 million in cash, subject to working capital and other adjustments.
The deal is expected to improve Google's hosted applications services Google Apps, which includes Gmail, Calendar, Talk, Docs & Spreadsheets and Personal Start Page.
In a statement, Dave Girouard, Vice President and General Manager, Google Enterprise, noted, “The response to Google Apps has been tremendous, with more than 1,000 small businesses signing up for the service every day.”
Postini is a provider of on-demand communications security and compliance solutions serving more than 35,000 businesses and 10 million users worldwide.
The services of the San Carlos, California-based Postini include Email Security, IM Security, Web Security, Message Archiving, Message Encryption, and Policy-enforced TLS.
Subject to customary closing conditions, the agreement is expected to close by the end of the third quarter 2007. Upon completion of the deal, Postini will become a wholly-owned subsidiary of Google.
Commenting on the transaction, Eric Schmidt, CEO of Google, said, "With this transaction, we're reinforcing our commitment to delivering compelling hosted applications to businesses of all sizes. With the addition of Postini, our apps are not just simple and appealing to users -- they can also streamline the complex information security mandates within these organizations."
The Mountain View, California-headquartered Google said that hosted services, like Google Apps and Postini solutions, would provide organizations with high quality communications tools without the expense and hassle of traditional on-premises solutions.
In April, Google agreed to acquire DoubleClick, Inc. from San Francisco-based private equity firm Hellman & Friedman and JMI Equity and management in a $3.1 billion all cash deal. DoubleClick connects advertising agencies, marketers and Web site publishers seeking to place online ads. It has more than 1,500 corporate clients.
Last year, Google acquired video-sharing site YouTube for $1.65 billion. YouTube is a consumer media company for people to watch and share original videos through a Web experience. The acquisition combined one of the largest and fastest growing online video entertainment communities with Google's expertise in organizing information and creating new models for advertising on the Internet.
Google closed Friday's regular trading session at $539.40. In the pre-market hours, the stock gained $3.65 at $543.05. For the past 52-weeks, the stock has been trading between $368.67 and $544.40.
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