Google Acquiring Communication Security Company, Postini Inc. For $625 Million

Postini Inc. LogoGoogle Inc. [a.k.a. Earchsay Engineway Uggernautjay (Pig Latin for “search engine juggernaut”)] will be acquiring web communication security company, Postini Inc.  The amount paid for the company is $625 million.

Postini’s services will be a valuable add-on for Google Apps.  As 1,000 small businesses are signing up for Google Apps per day, Postini will most likely be used to protect the information transferring between these businesses.

“Larger enterprises, however, face a challenge: though they want to deliver simple, useful hosted applications to their employees, they’re also required to support complex business rules, information security mandates, and an array of legal and corporate compliance issues. In effect, many businesses use legacy systems not because they are the best for their users, but because they are able to support complex business rules. This isn’t a tradeoff that any business should have to make,” stated Dave Girouard, VP & GM of Google Enterprise on the official Google Blog.

“We realized that we needed a more complete way to address these information security and compliance issues in order to better support the enterprise community. That’s why we’re excited to share the news that we’ve agreed to acquire Postini.”

Postini is a private, San Carlos, Calif.-based company.  August Capital, Bessemer Venture Partners, Mobius Venture Capital, Pacifica Fund, Summit Partners and Sun Microsystems Inc. are all investors in Postini who will potentially see a nice return on investment.

Postini intends on using Google technologies to develop a new suite of products.  The synergy created through this acquisition also aligns Google’s partnership with

[1]  Reuters: Google to buy Web security co Postini for $625 mln (via Yahoo! News)
[2] The Official Google Blog: Welcome, Postini team
[3] Pulse 2.0: Google AdWords Officially Merging Into Apps

This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at
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