Cisco To Buy PostPath For $215 Million

Cisco is moving to beef-up its cloud-based delivery model by announcing plans to buy privately-held PostPath, which develops and provides e-mail and calendaring software.

Cisco said PostPath's products will enhance its WebEx Connect collaboration platform. The deal includes purchasing PostPath's shares for about $215 million. The transaction is expected to be completed in the first quarter of Cisco's 2009 fiscal year.

PostPath, based in Mountain View, California, operates additional development facilities in Sofia, Bulgaria. PostPath will bring its Linux-based e-mail and calendaring solutions to Cisco's growing software-as-a-service (SaaS) collaboration platform. PostPath's products are interoperable with many e-mail solutions and also provide a browser-independent Ajax client. Many mobile clients are also compatible with PostPath software.

The PostPath software is scalable and highly secure, Cisco noted, adding that it utilizes Web 2.0 architectures that operate well with large and small businesses alike.

"The acquisition of PostPath complements our strategy to develop an integrated collaboration platform designed for how we work today and into the future, providing real productivity gains and a more satisfying user experience," said Doug Dennerline, senior VP of Cisco's Collaboration Software Group, in a statement. "Our 'cloud-based' delivery model offers our customers rapid deployment and compelling economics."

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Pointing to the PostPath acquisition as an example of its "build, buy, and partner" innovation strategy, Cisco said the acquisition enables it to move quickly into new markets and capture key market transitions.

Although its roots and main product thrust remain in networking, Cisco has been aggressively building a comprehensive collaboration portfolio that includes instant messaging, voice, video, data, document management, and Web 2.0.

Other acquisitions supporting the strategy include WebEx as part of Cisco's collaboration products; IronPort, which adds to Cisco's e-mail security offerings; and Securent a $100 million purchase to bolster Cisco's policy management software.