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The search giant Yahoo just announced it had reached a definitive agreement to acquire an email-suite maker.

Yahoo! Inc. today announced that it had reached a definitive agreement to acquire Zimbra, Inc. for $350 million.

Zimbra, based out of San Mateo CA, manufactures a popular suite of open source software.  The software, which also comes in a closed-source commercial variety, includes software for AJAX-based e-mail, calendar and contact management.

User created content, similar to Mozilla's extensions, is employed in Zimbra's software.  This content is nicknamed "Zimlets" and allows users to develop creative add-ons to the suite.

"We are excited to combine ourselves with one of the world's most successful Web mail services and extend Yahoo!'s credible brand and leadership in the e-mail business to universities, businesses and ISPs globally with Yahoo!'s ad and content network, the possibilities for Zimlets and other applications are endless," Zimbra co-founder and CEO Satish Dharmaraj said.

Yahoo feels the move will both allow them to strengthen the utility of their email suite and to develop a more intimate relationship with ISPs, something Zimbra has been talented at.

"Zimbra's tremendous talent and innovative technology will help to extend our core Mail offerings, further strengthening our strong leadership position in this space. Additionally, Zimbra's successful relationships with large ISPs are key as we expand our worldwide partner network and continue to focus on our commitment to being the partner of choice," Yahoo! CEO Jerry Yang said.

The acquisition is the second major acquisition for Yahoo! over the last couple weeks.  Two weeks ago Dailytech reported on Yahoo!'s acquisition of advertiser BlueLithium for $300 million dollars.

Facing fierce competition from Google, Yahoo!'s acquisition of Zimbra, represents its continued trend of large acquisitions in hopes of gaining a competitive edge in the many facets of online business.

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lol @ pic
By soydios on 9/17/2007 7:09:40 PM , Rating: 3
I lol'ed at the picture. Yahoo! 404.




Alot of Money
By Fnoob on 9/17/2007 7:26:21 PM , Rating: 2
For email?




I hope this isn't a forced change
By Chaotic42 on 9/17/2007 8:02:12 PM , Rating: 2
I'm a Yahoo! Mail Plus subscriber, and I chose Yahoo because it's clean and simple. The Mail Beta they keep pushing sucks, and I hope that they don't force me to switch over to some horrible "Web 2.0" (hate that term) application.




Tried Zimbra...
By glennerd7 on 9/17/2007 10:57:55 PM , Rating: 2
I have used Zimbra about a year ago and it was pretty solid. Many users couldn't get used to the web browser interface as opposed to a rich client so ultimately a client environment won out. As an offering to replace an already existing web mail Zimbra would be great. I really enjoyed Zimbra's search capabilities the most. I'll be curious to see where Yahoo takes Zimbra in the future.




Yahoo!
By timmiser on 9/17/2007 8:48:56 PM , Rating: 1
I love the new Yahoo mail. I'm a plus subscriber too and unlimited email storage is also pretty nice cuz I never have to clean out my inbox. Just wish I could sort by just the new unread mail like you can do in outlook.




By SaySomeThingOrDIE on 9/20/2007 1:51:00 AM , Rating: 1
Thanks GOD that money hungry bastard Terry Semel resigned his CEO position at Yahoo!. 6 years of lost profits is a bitch. Instead of copying what Google is doing, he went the opposite direction. I have Yahoo! Plus and Yahoo! business, but Zimbra is going to be a big plus.
It would be terrifying if Google pay Yahoo! or if they decide to merge.




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