Google Buys Web Security Firm For $625M

CNN Money:

nternet bellwether Google agreed to purchase Postini, a privately held provider of Web communications security, for $625 million in cash, the company announced Monday.

The statement from Google (Charts, Fortune 500) said the purchase will allow it to expand its Google Apps hosted application business, which includes Gmail, Calendar, Talk, Docs & Spreadsheets.

"The response to Google Apps has been tremendous, with more than 1,000 small businesses signing up for the service every day," said the statement from Google. "At the same time, large businesses have been reluctant to move to hosted applications due to issues of security and corporate compliance."

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