RealTime IT News

Critical Path Buys Messaging Competitor

Bolstering its position as a corporate e-mail provider, Critical Path Inc., Thursday acquired fellow Internet messaging and directory service ISOCOR for $287 million in stock.

Critical Path (CPTH) intends to build the first comprehensive messaging solution company for the enterprise, ISP and portal markets with the purchase of ISOCOR (ICOR). The acquisition will also accelerate Critical Path's global presence a strong international customer base, 8 locations and more than 75 associates and partners worldwide.

ISOCOR's strong presence in Europe will also further Critical Path's goal of creating an international infrastructure, according to Doug Hickey, Critical Path's president and chief executive officer.

The acquisition is expected to close next spring.

Paul Gigg, ISOCOR's president and chief executive officer, joins Critical Path as its executive vice president and chief operating officer.