Feeds

Symantec swoops on Messagelabs

Hot and SaaSy

The next step in data security

Symantec is to buy the British messaging security firm MessageLabs for $695m in cash.

The company will merge MessageLabs with its own Symantec Protection Network for a more comprehensive software-as-a-service offering. This will incorporate Symantec technology in data loss prevention, compliance, endpoint security and archiving.

Software-as-a-service, along with its sibling cloud computing, is a hot topic, even in these straitened times. It is an efficient way especially for small and medium-sized businesses to access technology that they could not otherwise afford.

Big software companies - and Symantec is a very big software company indeed - need to navigate their way through this new world, while trying to safeguard as much of their traditional licence revenues.

Buying a company that is already working to a software-as-a-service model looks like a sensible move, as it enables Symantec to tap into new revenues, not simply cannibalise its own.

The purchase price for MessageLabs looks a bit toppy for a business that generated $145m in the year to July 31, 2008. But MessageLabs is growing at a lick - more than 20 per cent in fiscal 2008. Symantec is convinced that it can cross-sell and upsell its own services to MessageLabs's 19,000 customers, and MessageLabs services to its own much bigger customer base.

The deal is expected to close by the end of the year. In August, Symantec announced its intention to buy PC Tools, the Aussie anti-spyware vendor, and nSpace, a virtual workspace developer. In June, the company bought a consumer online backup firm called Swapdrive for a reputed $123m.

Click here for the press release. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.