Managed security services firm MessageLabs and Star Technology Services, the business-focused ISP that gave it birth, are to become separate companies via a management buyout of Star. Terms of the deal were not disclosed.

Star Technology Services will now operate independently under a management team already in place. As well as serving as chief exec of the newly separated Star, Ben White will also retain his role as chief strategy officer of MessageLabs and vice chair of the board of MessageLabs Group.

For the year ending July 2006, MessageLabs Group reported revenue of £91.2m ($173m), up 23 per cent on 2005. Revenues were roughly split down the middle with Star bringing in £45.8m ($87m) in revenue and £49.7m ($94.4m) for MessageLabs.

MessageLabs, initially the virus-busting arm of Star, brought more bacon home than its parent for the first year last year. Its operations have enjoyed growth in excess of 35 per cent for the last five years.

"MessageLabs Group's decision to separate sister companies Star and MessageLabs will enable both companies to focus independently and more strategically on future growth," said David Morrison, chairman of MessageLabs Group. "The sale of Star should also provide additional funding for MessageLabs continued expansion beyond email security." ®

Related stories

• Calyx yields to MBO (26 May 2007)
• Sourcefire eyes acquisitions (26 April 2007)
• Hackers debut spam and virus sandwich (26 April 2007)
• Smut spam drops to all-time low (8 March 2007)
• Stormy weather for malware defenses (7 March 2007)
• Quocirca's changing channels Managed email filtering market hots up (9 May 2005)