New York (NY) - Google Inc. said on Monday it has agreed to buy Web-based security provider Postini for $625 million, expanding its package of online applications to compete with Microsoft Corp.’s Office. Postini provides security and encryption services, protecting instant messaging, e-mail and other communications, to more than 35,000 businesses and 10 million users worldwide.

Google said the deal would enable it to provide organizations with more Web-based services similar to its Google Apps package, which includes its e-mail service Gmail, Calendar, and Talk, its messaging service. Google has been expanding its range of services from Web search and advertising to include popular software applications for businesses, such as word processing, putting it in direct competition with Microsoft’s Office package of applications.

More here at CNN.