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Symantec to buy MessageLabs for $695M

It plans to use the acquisition to push its existing backup, storage, and online remote access into the MessageLabs customer base.

Margaret Kane Former Staff writer, CNET News
Margaret is a former news editor for CNET News, based in the Boston bureau.
Margaret Kane

Symantec is acquiring MessageLabs, a maker of online messaging and Web security services, the company said Monday.

Symantec logo

The deal is valued at approximately $695 million in cash, with Symantec paying 310 million pounds sterling and $154 million.

Symantec said the deal will help it strengthen its position in the software-as-a-service market. Symantec will focus on cross-selling and up-selling its existing SaaS offerings of backup, storage, and online remote access into the MessageLabs customer base.

MessageLabs generated approximately $145 million in revenue during fiscal year 2008, ended July 31, the companies said. The deal is expected to close by the end of the 2008 calendar year.