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Google agrees to acquire Postini

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Mountain View, Calif.—Google announced Monday that it has signed an agreement to acquire Postini, an e-mail, IM and Web-based communications security company, for $625 million in cash.

Postini’s services include message security, archiving, encryption and policy enforcement. It will become a wholly owned subsidiary of Google.

The deal is expected to close by the end of the third quarter.

Google said the acquisition will help it attract larger companies to its enterprise applications with the security and assurance they require.

“The response to Google Apps has been tremendous, with more than 1,000 small businesses signing up for the service every day,” said Dave Girouard, VP-general manager at Google Enterprise, in a statement. “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.”

—Carol Krol

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