Symantec buys MessageLabs - a vote of confidence in the future
Symantec, the global leader in computer security (Norton, et al) has announced its purchase of the UK’s MessageLabs, the leading Software-as-a-Service provider of internet and email security services. In an unusual mixed currency deal, Symantec is paying UKP310 million plus USD154 million.
I have several reasons to be interested in this transaction:
- An established packaged software giant acquiring a smaller, successful SaaS vendor. A smart move by Symantec to avoid the pain of self-transformation.
- MessageLabs’ core internet security platform was designed and built by my old colleagues at Fronde. A team in London and a team in Wellington worked around the clock for 9 months to deliver an industrial strength system which processes more transactions than Visa, the global credit card system. I had the pleasure of meeting the MessageLabs guys several times, and they deserve their payout.
- Doing a big CASH deal in the midst of the current financial market crisis. Good technology businesses will survive the meltdown, as will good businesses in many other sectors. People will still buy food and clothes, use high street banks, go to school, have babies in hospital, watch TV, etc, etc. In other words, life will go on.
This transaction is a vote of confidence not only in the MessageLabs business and in Symantec’s own future, but also in the world’s future. Take heart, everyone.
October 18th, 2008 at 12:09 am
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