SUNNYVALE, Calif. -- Yahoo! Inc. (NASDAQ: YHOO), a leading global Internet company, today announced that it has entered into a definitive agreement to acquire Zimbra, Inc. (www.zimbra.com), a leader in next generation e-mail and collaboration software. Under the terms of the agreement, Yahoo! will acquire Zimbra for approximately $350 million.
"Our industry-leading communications products, including Yahoo! Mail, are critical to the future growth and success of Yahoo!," said Jerry Yang, chief executive officer, Yahoo! Inc. "Zimbra's tremendous talent and innovative technology will help to extend our core Mail offerings, further strengthening our strong leadership position in this space. 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."
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. Zimbra's offerings include rich, AJAX-based e-mail, calendar, and contact management features that can be used both on and offline. Their open platform enhances the user experience by enabling creative mash-ups called Zimlets that tie in valuable Web services to e-mail, and can be tailored to fit the needs of every customer.
"We are excited to combine ourselves with one of the world's most successful Web mail services and extend Yahoo!'s credible brand and leadership in the e-mail business to universities, businesses and ISPs globally," said Satish Dharmaraj, Zimbra co-founder and CEO. "With Yahoo!'s ad and content network, the possibilities for Zimlets and other applications are endless."
Yahoo Inc. (Nasdaq: YHOO)