Yahoo! To Acquire Zimbra Mail For $350 Million

Yahoo! Announces Agreement to Acquire Zimbra, reports an official Yahoo! Press release. Zimbra, is a leader in next generation e-mail and collaboration software.

In this regard, Founder & CEO, Jerry Yang said, "Our industry-leading communications products, including Yahoo! Mail, are critical to the future growth and success of Yahoo! Zimbra's tremendous talent and innovative technology will help to extend our core Mail offerings, further strengthening our strong leadership position in this space. Additionally, Zimbra's successful relationships with large ISPs are key as we expand our worldwide partner network and continue to focus on our commitment to being the partner of choice."

Satish Dharmaraj, Zimbra;s co-founder & CEO said, "We are excited to combine ourselves with one of the world's most successful Web mail services and extend Yahoo!'s credible brand and leadership in the e-mail business to universities, businesses and ISPs globally. With Yahoo!'s ad and content network, the possibilities for Zimlets and other applications are endless."

"Following the acquisition, Zimbra will become a wholly-owned subsidiary of Yahoo!. Satish Dharmaraj will continue to lead the Zimbra team based in Yahoo!'s Sunnyvale headquarters and will report to Brad Garlinghouse. The transaction is subject to customary closing conditions, including regulatory approval. It is expected that the transaction will be completed in the fourth quarter of 2007."

With Zimbra, as Yahoo's subsidiary, Yahoo's bolsters its stance against Google Apps.

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