CUPERTINO, Calif. – Oct. 8, 2008 – Symantec Corp. (Nasdaq: SYMC) today announced it has signed a definitive agreement to acquire MessageLabs, a leading provider of online messaging and Web security services. Under the terms of the agreement, Symantec will acquire MessageLabs for a purchase price of approximately $695 million in cash, subject to foreign currency adjustments, payable in approximately £310 million Pounds Sterling and $154 million US Dollars.
MessageLabs generated approximately $145 million in revenue during fiscal year 2008, ending July 31, 2008 and grew by more than 20 percent over the prior fiscal year. The agreement is subject to customary closing conditions including regulatory approvals, and is expected to close by the end of the 2008 calendar year.
With the acquisition of MessageLabs, Symantec gains a leadership position in the rapidly growing Software-as-a-Service (SaaS) segment and strengthens its lead in the messaging security market. MessageLabs is the number-one provider of online messaging security worldwide with more than eight million end users at more than 19,000 clients ranging from small business to the Fortune 500. Symantec will capitalize on cross-selling and up-selling its existing SaaS offerings of backup, storage and online remote access into the MessageLabs customer base. And future SaaS offerings, leveraging Symantec technology in data loss prevention, compliance, endpoint security and archiving, will be enhanced by MessageLabs’ expertise in SaaS sales, operations and support.
MessageLabs plus Symantec Protection Network will result in the creation of a new Symantec Software-as-a- Service product group to accelerate the development of new SaaS solutions and hybrid offerings for IT professionals. SaaS is described as one of the most impactful trends in software with a current estimated market size of $5.71 billion (in 2007) reaching $16.98 billion by 2012, representing 24.4 percent CAGR according to IDC1. For more information on how MessageLabs will complement Symantec in the delivery of SaaS offerings please visit: http://go.symantec.com/MessageLabs