Google acquires Postini (message security)

Companies in Relationship

Google, Postini

Deal Facts

Initial Announcement Date: 7/07

Consideration: $545.7 million in cash + $44.8 million in retention bonuses (Source: Google 10-K)

Google acquires Postini, a provider of on-demand communications security and compliance solutions. Postiniís offerings which include message security, archiving, encryption, and policy enforcement, are used to protect a companyís email, instant messaging, and other web-based communications. Following the acquisition, Postini will become a wholly-owned subsidiary of Google.

Strategic Implications

The acquisition, to a large extent, is aimed at gaining a stronger foothold in the $12B+ client hosted office productivity tools market, where Microsoft is a clear leader. Postini enhances Google Enterprise groupís offering, which includes Google Apps, Google search, Google Mini and Google Earth and helps them gain significant momentum in the corporate market, particularly the one for small and medium sized businesses.

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