Yahoo! to Acquire Zimbra

Yahoo! Inc. plans to acquire e-mail and collaboration software maker Zimbra Inc. for about $350 million.

The acquisition of Zimbra will help Yahoo! to expand its presence in universities, businesses and through ISPs by enabling organizations to host e-mail on or off premises with their own domain, Yahoo! Said..

Zimbra's offerings include AJAX-based e-mail, calendar and contact management features that can be used both on and offline. Its open platform has mash-ups called Zimlets that tie in Web services to e-mail, and can be tailored to fit the needs of the user.

"Zimbra's tremendous talent and innovative technology will help to extend our core mail offerings, further strengthening our strong leadership position in this space,” said Jerry Yang, CEO of Yahoo! “Additionally, Zimbra's successful relationships with large ISPs are key as we expand our worldwide partner network and continue to focus on our commitment to being the partner of choice."

Following the acquisition, Zimbra will become a wholly-owned subsidiary of Yahoo!. Satish Dharmaraj will continue to lead the Zimbra team based in Yahoo!'s Sunnyvale, Calif., headquarters. The transaction is subject to customary closing conditions, including regulatory approval and is expected to be completed in the fourth quarter of 2007.

Yahoo! www.yahoo.com
Zimbra www.zimbra.com

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