Cisco Takes On Microsoft Exchange With PostPath Buy

Cisco Systems Wednesday said it plans to acquire PostPath, a vendor that targets Microsoft in the e-mail and calendaring software market.

Under the terms of the agreement, Cisco will pay approximately $215 million for all shares of PostPath, Mountain View, Calif., in a deal expected to close during Cisco's current fiscal quarter, according to a Cisco statement.

PostPath on its Web site positions itself as "the only drop-in natively interoperable alternative to Microsoft Exchange," touting the high-performance and ease of backup of its PostPath Server.

Cisco, San Jose, Calif., plans to use PostPath's Linux-based software to supplement its WebEx Connect collaboration platform, giving it the ability to provide e-mail and calendar functionality via a Software-as-a-Service model. PostPath's offerings are interoperable with other e-mail solutions, provide a browser-independent AJAX Web client and also work with mobile clients, Cisco said in the statement.

"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 vice president of Cisco's Collaboration Software Group, in the statement. "Our 'cloud-based' delivery model offers our customers rapid deployment and compelling economics."

After the sale is completed, PostPath employees will be integrated into Cisco's Collaboration Software Group.

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