Google to Acquire Postini for $625 million

from CenterNetworks - by Allen Stern

Just in from Google HQ - news that Google has acquired Postini for $625 million. Postini has 300 employes and handles message security, archiving, encryption, and policy enforcement. Postini will become a wholly-owned subsidiary of Google and the deal should close by the end of the 3rd quarter 2007. The Google blog has just updated with the news. There is also a very detailed FAQ document for download.

From the Google news bulletin:

"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," said Eric Schmidt, Chairman of the Board and Chief Executive Officer of Google.

"The response to Google Apps has been tremendous, with more than 1,000 small businesses signing up for the service every day. At the same time, 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 -- employees get the intuitive products they want, and the company achieves the security and assurance it needs," said Dave Girouard, Vice President and General Manager, Google Enterprise.

"As the market leader in on-demand secure communications and compliance solutions, Postini complements Google perfectly. We share a commitment to providing enterprise customers with compelling technology alternatives. This is an exciting milestone, one that will certainly lead to the next level of rapid innovation," said Quentin Gallivan, President and Chief Executive Officer of Postini.

"Postini's founding vision is to bring to market technology solutions that address enterprise messaging problems in a different way. Our on-demand offering liberates businesses from the burdens associated with traditional on-premise solutions. We are proud of what we have done to achieve our vision on behalf of our customers, and combining Google and Postini is a powerful next step in this creative journey," said Scott Petry, Founder, Chief Technical Officer, and Executive Vice President of Product Development at Postini.

I guess this continues Google's pace of acquiring one large company a week.