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Google pays $625m for security firm

Updated on 10 July 2007

By Channel 4 News

Google's spending spree continued yesterday when it paid $625m for web security firm Postini.

The move is seen as an assault on Microsoft's package of applications, MS Office.

Postini provides security and encryption services to more than 35,000 businesses and 10 million users worldwide.

Google said the Postini service would help organisations that use online applications such as Google's own suite which includes Gmail, Calendar, Talk - as well as a web-based word processor and spreadsheet.


Google logo (credit: Reuters)

Google Apps has been adopted by more than 100,000 businesses to date.

Eric Schmidt, Google chief executive, said: "With this transaction, we're reinforcing our commitment to delivering compelling hosted applications to businesses of all sizes."

Earlier this year, Google bought online advertising agency Doubleclick for $3.1bn while last October it snapped up video-sharing site YouTube for $1.65bn.

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