Symantec buys MessageLabs for $695 million

Symantec is set to pick up fellow security firm MessageLabs for $695 million (400 million), it announced today.

The purchase price is split between pounds sterling and American dollars, at 310 million and $154 million respectively. MessageLabs saw revenue of $145 million last year, but saw growth of 20 per cent.

Jumping on the cloud bandwagon, Symantec's head said the move would give the security via Software as a Service (SaaS) provider an added boost in their cloud-based services.

"By combining MessageLabs with our Symantec Protection Network team, we have one of the strongest portfolios of cloud-based infrastructure services and a great foundation on which to grow," said John W. Thompson, chairman and chief executive officer at Symantec.

Adrian Chamberlain, chief exec at MessageLabs, also pushed the cloud angle: "Symantec and MessageLabs have a common belief in the benefits of in-the-cloud services and how they enable customers to be protected from threats and enforce policy," he said.

Symantec sent a letter to its customers, telling them that Symantec Hosted Mail would be supported throughout the term of their subscription. "Your existing service will remain supported, maintained and updated. Symantec will provide resources to support and assist you in your transition to the new MessageLabs email filtering service," the letter said.

The deal is set to close by the end of the year.