Friday, 10 October 2008

Symantec to Extend Online Services with MessageLabs Acquisition

Symantec Thursday announced it has inked a deal to purchase online messaging and Web security services company MessageLabs for approximately USD 695 million.

With the acquisition of MessageLabs, Symantec looks forward to gaining a stronger position in the rapidly growing Software-as-a-Service (SaaS) segment and strengthen its lead in the messaging security market.

By combining MessageLabs’ experience in the SaaS market with Symantec’s portfolio of technologies, Symantec said it plans to offer a broad portfolio of online service to secure and manage information and significantly expands its messaging security market leadership.

The security company also plans to capitalize on cross-selling and up-selling its existing SaaS offerings of backup, storage and online remote access into the MessageLabs customer base.

“MessageLabs extends our investments in the Software-as-a Service segment and will allow us to offer our customers unprecedented choice from a single provider of message security solutions,” said John W. Thompson, chairman and chief executive officer, Symantec.

“By combining MessageLabs with our Symantec Protection Network team, we have one of the strongest portfolios of cloud-based infrastructure services and a great foundation on which to grow.”

MessageLabs has some eight million end users and more than 19,000 clients ranging from small business to the Fortune 500.

“Symantec and MessageLabs have a common belief in the benefits of in-the-cloud services and how they enable customers to be protected from threats and enforce policy,” said Adrian Chamberlain, chief executive officer, MessageLabs.

“MessageLabs’ services help ensure that only safe and appropriate information enters and leaves the organization. Together, with Symantec, we can set a roadmap for the future of online services.”

The agreement is subject to customary closing conditions including regulatory approvals, and is expected to close by the end of the 2008 calendar year.