Yahoo! Buys Open-Source Email Firm

It picks up Zimbra for $350 million.
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Yahoo!'s

(YHOO)

buying binge continues.

On Monday, the Internet giant announced that it would acquire privately held open-source email company

Zimbra

for $350 million.

The move is intended to make the company more competitive against rivals

Google

(GOOG) - Get Report

and

Microsoft

(MSFT) - Get Report

, which also sell email hosting capabilities to businesses and large organizations.

The acquisition comes during a 100-day strategic review of the business being undertaken by CEO Jerry Yang. It also comes on the heels of Yahoo!'s acquisition of ad-network Blue Lithium for $300 million. Earlier in the year, Yahoo! acquired its remaining outstanding stake in ad exchange Right Media for $680 million.

"Our industry-leading communications products, including Yahoo! Mail, are critical to the future growth and success of Yahoo!," Yang said in a press release. "Zimbra's tremendous talent and innovative technology will help to extend our core Mail offerings, further strengthening our strong leadership position in this space."

Shares of Yahoo! closed Monday up 22 cents to $24.95.