Symantec Acquires Messagelabs in Billion-dollar Deal

By Greg McNevin

October 13, 2008: In a deal worth a total of AU$1.05 billion, Symantec has announced that it has signed a definitive agreement to acquire online messaging and Web security services specialist Messagelabs.

Late last week the company announced the acquisition agreement, which will see Symantec fork approximately US$695 million (AU$1.05 billion) in cash (£310 million Pounds Sterling and $154 million US Dollars), subject to foreign currency adjustments.

The mammoth deal will see Symantec gain a leading position in the rapidly growing Software-as-a-Service (SaaS) segment while further strengthening its lead in the messaging security market.

“MessageLabs extends our investments in the Software-as-a Service segment and will allow us to offer our customers unprecedented choice from a single provider of message security solutions” said John W. Thompson, chairman and chief executive officer, Symantec. “By combining MessageLabs with our Symantec Protection Network team, we have one of the strongest portfolios of cloud-based infrastructure services and a great foundation on which to grow.”

Symantec says that the combination of MessageLabs’ SaaS expertise with its broad portfolio of technologies, it will be able to provide the broadest range of offerings in the messaging security market including software, appliance and hosted services.

“Symantec and MessageLabs have a common belief in the benefits of in-the-cloud services and how they enable customers to be protected from threats and enforce policy,” said Adrian Chamberlain, chief executive officer, MessageLabs. “Together, with Symantec, we can set a roadmap for the future of online services.”

The agreement is subject to customary closing conditions including regulatory approvals, and is expected to close by the end of the 2008.

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