Yahoo has acquired Open Source Email and Collaboration software provider Zimbra for $350 Million. Zimbra is a email and collaboration software provider for businesses, universities and ISP’s worldwide. Zimbra is feature rich Ajaxified application suite makes it easy to switch between calender, email and other features. . Zimbra has both online and offline functionality. Zimbra offers a webmail, a desktop client, contact management, calendar, Word processor, spreadsheets etc.

With this acquisition Yahoo has entered the online Apps market competing with Google. It is interesting to see how Yahoo will use of Zimbra technology to enhance its already popular email.

Further Reading: Techcrunch, Techmeme, Zimbra Demo