The security software firm said Wednesday it agreed to buy online messaging and Web security services provider MessageLabs for about $695.0 million in cash. The move is intended to strengthen the buyer's position in the growing software-as-services and messaging market. The merger is expected to be completed within the year.
The Cupertino, Calif.-based Symantec added 1.3%, or 21 cents, $15.23 during midday trading in New York. The company's shares are trading hands for 27.3% less than a year ago.
The final price tag for the privately held MessageLabs, which is based in Gloucester, England, is in play due to fluctuations in currency as Symantec will pay 310.0 million in British pounds and $154.0 million. The purchasing party said MessageLabs brought in roughly $145.0 million in sales during fiscal 2008, which ended July 31, representing a 20.0% jump from the year-ago period.