Google Acquires Postini

Well, this is interesting:

MOUNTAIN VIEW, Calif. – July 9, 2007 – Google Inc. (NASDAQ: GOOG)

announced today that it has signed a definitive agreement to acquire

Postini, a global leader in on-demand communications security and

compliance solutions serving more than 35,000 businesses and 10

million users worldwide. Postini’s services — which include message

security, archiving, encryption, and policy enforcement — can be used

to protect a company’s email, instant messaging, and other web-based

communications. Under the terms of the agreement, Google will acquire

Postini for $625 million in cash, subject to working capital and other

adjustments, and 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.

“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.

Postini is backed by August Capital, Bessemer Venture Partners, Mobius Venture Capital, Pacifica Fund, Summit Partners and Sun Microsystems. More here from Alarm Clock.

Happy days in those offices, I’m guessing.