Symantec Corp. has signed a definitive agreement to acquire MessageLabs, a provider of online messaging and Web security services.
Under the terms of the agreement, Symantec will acquire MessageLabs for a purchase price of approximately US$695 million in cash, subject to foreign currency adjustments, payable in approximately £310 million Pounds Sterling and US$154 million US Dollars.
MessageLabs generated approximately US$145 million in revenue during fiscal year 2008, ending 31st July 2008 and grew by more than 20 percent over the prior fiscal year.
With the acquisition of MessageLabs, Symantec gains a leadership position in the growing Software-as-a-Service (SaaS) segment and strengthens its lead in the messaging security market. MessageLabs is the number-one provider of online messaging security worldwide with more than eight million end users at more than 19,000 clients ranging from small business to the Fortune 500.
Symantec will capitalize on cross-selling and up-selling its existing SaaS offerings of backup, storage and online remote access into the MessageLabs customer base. And future SaaS offerings, leveraging Symantec technology in data loss prevention, compliance, endpoint security and archiving, will be enhanced by MessageLabsí expertise in SaaS sales, operations and support.
MessageLabsí established suite of online services for messaging and web security provide additional, complementary offerings to those already available on the Symantec Protection Network platform which includes Online Backup, Online Storage for Backup Exec and Online Remote Access. MessageLabsí 14 worldwide data centers and expertise in SaaS sales, operations and support will also allow for future international expansion of current Symantec Protection Network services.
MessageLabs plus Symantec Protection Network will result in the creation of a new Symantec Software-as-a-Service product group to accelerate the development of new SaaS solutions and hybrid offerings for IT professionals.