Yahoo! said on Monday it will pay $350 million in a cash and stock deal to acquire Zimbra, makers of “open source” e-mail and collaboration software that is an alternative to Microsoft Outlook. The deal puts Yahoo into more direct competition with both Microsoft and Google in the market for Web-based collaboration software used by both businesses and consumers.
Zimbra counts a variety of customers in higher education and among Fortune 1000 enterprises, particularly in the financial services, retail, and manufacturing sectors, according to its Web site. The deal largely consists of cash said Brad Garlinghouse, senior vice president of communications and communities at Yahoo. _ Zimbra is a San Mateo, California-based company backed by Silicon Valley venture firms Benchmark Partners, Redpoint Ventures and Accel Capital._
From: http://news.yahoo.com/s/nm/20070917/tc_nm/yahoo_zimbra_dc_2 Link to official Zimbra announcement: http://www.zimbra.com/blog/archives/2007/09/yahoo_acquires_zimbra.html