XETI is a developer of standards-based PKI tools. PKI is a system of encrypted digital certificates designed to facilitate secure e-commerce transactions.

With the acquisition, Critical Path (CPTH)will provide its messaging customers PKI certificate interoperability. Financial terms were not disclosed.

"The acquisition of XETI further strengthens Critical Path's guaranteed delivery services with essential PKI technology providing customers with ubiquitous access to digital certificates," said Doug Hickey, Critical Path's president and chief executive officer.

"Critical Path is dedicated to staying at the forefront of technology and to quickly bringing to market the most complete suite of solutions that satisfies the full range of e-mail and messaging demands presented by customers and prospects."

Critical Path provides e-mail and other messaging tools to corporations, Internet service providers, Web hosting companies and Web portals.