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j2 Global Acquires VIPRE Security; FuseMail Synergies Coming

j2 Global CEO Vivek Shah

j2 Global has acquired VIPRE Security, according to j2’s earnings call yesterday. It sounds like VIPRE will merge with another j2 portfolio company — FuseMail. Synergies with Excel Micro, a SaaS distributor owned by j2, also are expected.

Combing VIPRE and FuseMail should allow the companies to be even more competitive in the cloud services, security and SMB sectors — especially for resellers of Excel Micro, j2 CEO Vivek Shah told Wall Street analysts yesterday. “We’re excited for the security market particularly with small and medium businesses and see both organic and M&A growth opportunities,” he said.

FuseMail now has 1.8 million users and protects more than 900 million e-mails per month. “We have recently expanded the breadth of services with the acquisition of VIPRE,” j2 President Scott Turicchi said during yesterday’s earnings call. “This is an endpoint security business focused on threat intelligence. We look forward to integrating VIPRE, cross-selling the service to our installed base and offering the solution in the European Union.”

The VIPRE deal is “very important for our cloud business and specifically, for the security piece of that business,” Shah adds. “It not only brings customers, but it expands the breadth of services. It moves in the direction of being a more complete service provider. It also combined with some organic growth this year is going to take that business probably to the high $60 million to maybe $70 million of revenue.”

VIPRE Message to Partners, Customers

The VIPRE deal comes only a few months after the security launched cloud-centric services for MSPs, channel partners and their end-customers.

Kimberly Prescott

In a blog from VIPRE Director of Worldwide E-Commerce Kimberly Prescott, she assured customers and partners that the company would maintain its focus amid the M&A deal.

According to Prescott:

“As the volume and sophistication of malicious attacks grows exponentially, so does the risk to SMBs. Now more than ever, there’s a tremendous need to provide businesses with advanced protection that’s built to keep pace.

To best address that need, VIPRE has joined j2 Global, a leader in cloud services and digital media for over 20 years (www.j2global.com). Together, VIPRE and j2 create a formidable barrier against even the most sophisticated online threats—and we’re excited to see our partners and customers reap the benefits.”

We’ll be watching for additional statements from j2, VIPRE and FuseMail.

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