Another week, another deal. Google Inc.'s (NASDAQ: GOOG) M&A team has been busy this year. The latest deal: $625 million for Postini.For a company the size of Google, the price tag isn't big. But the deal is certainly significant. Basically, Postini develops security for email systems. So as Google tries to get more traction from its Gmail service, a top-notch security layer is a must-have. It will also be key in getting a piece of Microsoft Corp.'s (NASDAQ: MSFT) email franchise.
I had a chance to interview Nick Selby, who is the Enterprise Security Analyst with The 451 Group. According to him, "This is Google's biggest security acquisition to date and confirms that it is increasingly targeting the enterprise. The Postini buy also gives Google 35,000 enterprise customers. Postini has been dual tracking for a private sale and IPO. We would have thought it would go for a bit more for an acquisition. So perhaps Google has got itself a good deal as well as a strategic fit."
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
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