Symantec to buy MessageLabs for $695M

Symantec is acquiring MessageLabs, a maker of online messaging and Web security services, the company said Monday.

The deal is valued at approximately $695 million in cash, with Symantec paying 310 million pounds sterling and $154 million.

Symantec said the deal will help it strengthen its position in the software-as-a-service market. Symantec will focus on cross-selling and up-selling its existing SaaS offerings of backup, storage, and online remote access into the MessageLabs customer base.

MessageLabs generated approximately $145 million in revenue during fiscal year 2008, ended July 31, the companies said. The deal is expected to close by the end of the 2008 calendar year.