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Google to boost hosted software with Postini acquisition

Google is to acquire Postini, a specialist provider of e-mail archiving systems for regulatory compliance.

The $625m acquisition is expected to boost Google hosted software business. Google's hosted software products, which incldues Gmail, Calendar, Talk, Docs & Spreadsheets, and Personal Start Page, has been adopted by more than 100,000 businesses already. Eric Schmidt, Chairman of the Board and Chief Executive Officer of Google, said, "With this transaction, we're reinforcing our commitment to delivering compelling hosted applications to businesses of all sizes.

Postini's products are sold as on-demand services covering message security, archiving, encryption, and policy enforcement for email, instant messaging, and other web-based communications.

Users include Merril Lynch, US electronics retailer Circuit city and book publisher, Simon and Schuster.

Google said it would continue to support users of Postini's srevices and invest in Postini products.

E-mail archiving compliance >>

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