Yahoo! has announced the purchase of Zimbra, spending $350 million on the email and calendar services provider.

The acquisition gives Yahoo added leverage in the email arena by extending its reach into the university and business sectors.

"Our industry-leading communications products, including Yahoo Mail, are critical to the future growth and success of Yahoo," said CEO Jerry Yang. "Zimbra's tremendous talent and innovative technology will help to extend our core Mail offerings, further strengthening our strong leadership position in this space. Additionally, Zimbra's successful relationships with large ISPs are key as we expand our worldwide partner network and continue to focus on our commitment to being the partner of choice."