Spam-buster SurfControl buys Messagesoft

LONDON: British tech firm, SurfControl Plc unveiled a deal to acquire U.S.-based Messagesoft for up to $14.69 million, in a bid to cement its hold on a growing market for software that filters junk emails.

SurfControl, whose software helps to keep computers free of unwanted Web content like pornography and junk emails, said the purchase would give it access to California-based Messagesoft's technology and its Chinese sales and distribution operation.

The payment will be made in two stages -- SurfControl will initially pay $9.69 million in cash up front, with another payment of $5 million by December 31, depending on sales of the product.

Junk or spam emails have become a nuisance for Internet users, with some industry experts saying that more than half of all electronic mail traffic is spam.

Blocking out spam mails has become expensive for companies to manage, and the United States and some European countries have even passed laws outlawing the worst forms of spam.

The total market for anti-spam products is expected to reach nearly $1 billion this year, according to California-based market research firm Radicati Group Inc.

"The secure content market is evolving and presenting us with new opportunities," SurfControl Chief Executive, Steve Purdham said in a statement.

"This acquisition, together with our ongoing development plans, will form the foundation for our next level of growth."

Shares in SurfControl, whose customers include the Sydney Opera House Trust and the U.S. Defence Logistics Agency among some 20,000 customers globally, were 7-1/2 pence up in afternoon trade at 630p.