Aftermail sells to US firm, for up to $65m

Wellington information technology company AfterMail has been bought by US firm Quest Software in a deal which could be worth as much as $65 million.

Quest paid US$14.7 million ($21.5 million) in cash up front, which could be followed by performance-based payments of up to US$30 million over the next three years.

AfterMail, an email management software company, was formerly privately owned.

Quest spokesman Steve Dickson said the purchase strengthened its storage management and archiving services.

" In addition, it will allow our customers to extend beyond storage and compliance to enable collaborative information sharing and integration," he said.

Quest planned to retain AfterMail's product development team based in Wellington, and would also establish a sales office in New Zealand.

- NZPA