Symantec will pay US$695 million for MessageLabs, a security vendor that offers a hosted spam and Web traffic filtering service Symantec will pay US$695 million for MessageLabs, a security vendor that offers a hosted spam and Web traffic filtering service.MessageLabs offers its services as a monthly subscription. The filtering is performed within the company’s 14 data centers located around the world, a type of computing known as “software as a service” or cloud computing. It also can route a company’s Web traffic through its filters to block potentially harmful Web sites as well as scan instant messages.Software-as-a-service offerings have been increasingly popular with businesses since it frees administrators from installing software upgrades and performing other maintenance tasks they would have to do in-house. MessageLabs’ subscribers turn over the management of their e-mail and Web traffic security to the company and do not have to install on-site equipment.For Symantec, the acquisition of MessageLabs gives it an alternative e-mail security offering to BrightMail, the company’s antispam and antivirus appliance. “We think the opportunity to expand our footprint in the rapidly growing software-as-a-service market is significantly enhanced by this team becoming part of Symantec,” Symantec CEO John Thompson said in a conference call to discuss the deal.MessageLabs holds a 29.7 percent share of the hosted security services market, followed by Google, which owns Postini, at 18.7 percent and Microsoft at 8.7 percent, according to Symantec. Before this acquisition, Symantec held just 1.1 percent. MessageLabs’ service will be integrated into the Symantec Protection Network, an online-based backup, data restoration and remote access service launched in April 2007 for small to medium-size businesses. Symantec will put its Protection Network services within MessageLabs’ data centers.Symantec also said it is going to create a specific software-as-a-service focused product group. Adrian Chamberlain, CEO of MessageLabs, will lead the team and report to Enrique Salem, Symantec’s chief operating officer.MessageLabs, which is based in Gloucester, England, has about 19,000 clients worldwide. The company reported $145 million in revenue for its fiscal 2008 that ended July 31. The revenue figure is 20 percent more than in fiscal 2007.Symantec officials said during the conference call with analysts that two-thirds of MessageLabs’ customers are in Europe, and Symantec sees opportunities for pushing the company’s service in the Americas. Symantec is based in Cupertino, California.The deal, expected to close by the end of December, is subject to approval by regulators. Related content feature Top cybersecurity M&A deals for 2023 Fears of recession, rising interest rates, mass tech layoffs, and conservative spending trends are likely to make dealmakers cautious, but an ever-increasing need to defend against bigger and faster attacks will likely keep M&A activity steady in By CSO Staff Sep 22, 2023 24 mins Mergers and Acquisitions Mergers and Acquisitions Mergers and Acquisitions brandpost Unmasking ransomware threat clusters: Why it matters to defenders Similar patterns of behavior among ransomware treat groups can help security teams better understand and prepare for attacks By Joan Goodchild Sep 21, 2023 3 mins Cybercrime news analysis China’s offensive cyber operations support “soft power” agenda in Africa Researchers track Chinese cyber espionage intrusions targeting African industrial sectors. By Michael Hill Sep 21, 2023 5 mins Advanced Persistent Threats Cyberattacks Critical Infrastructure brandpost Proactive OT security requires visibility + prevention You cannot protect your operation by simply watching and waiting. It is essential to have a defense-in-depth approach. By Austen Byers Sep 21, 2023 4 mins Security Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe