Yahoo! Announces Agreement to Acquire Zimbra

Yahoo! Inc. (NASDAQ: YHOO) announced that it has entered into a definitive agreement to acquire Zimbra, Inc. for approximately $350 million. 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 AJAX-based e-mail, calendar, and contact management features that can be used both on and offline. Their platform enables mash-ups called Zimlets that tie in Web services to e-mail, and can be tailored to fit the needs of every customer. Following the acquisition, Zimbra will become a wholly-owned subsidiary of Yahoo!. Satish Dharmaraj will continue to lead the Zimbra team based in Yahoo!'s Sunnyvale headquarters and will report to Brad Garlinghouse. The transaction is subject to customary closing conditions, including regulatory approval. It is expected that the transaction will be completed in the fourth quarter of 2007. http://www.zimbra.com/