Breaking News: Google Inc Purchases Postini For $625 Million

The Official Google press center announces their acquisition of Postini a global leader in on-demand communications security and compliance solutions serving more than 35,000 businesses and 10 million users worldwide. 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."

A pdf called FAQ: Frequently Asked Questions explains:

"We realized we needed a more complete solution that addresses the information security and compliance issues facing larger businesses. While enterprises want to deliver simple, useful hosted applications to their employees, they're also required to support complex business rules, information security mandates, and an array of legal and corporate compliance issues. As such, many businesses have been forced to choose between innovation on one hand, and these backoffice mandates on the other. In effect,many businesses use legacy systems not because they are the best for their users, but because they are able to support complex business rules. We agreed to acquire Postini in order to create a more complete Google Apps solution that addresses the information security and compliance issues facing businesses of all sizes."

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

Quentin Gallivan, President and Chief Executive Officer of Postini commented,"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."

Google will continue to support Postini customers and invest in Postini products.

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