Kara Swisher of all things D broke the story this morning and it is now confirmed that Yahoo has purchased Zimbra for $350 million. Surprise surpirse, GigaOm confirms the purchase price is mostly cash. Yahoo is clearly moving in Yahoo 2.0 direction snapping up cool Ajaxified companies focused on rich web 2.0 user experience.

Mathew stupulates that it may be new Zimbra Desktop which gives user access to their data even when offline. Yahoo CEO Jerry Yang is clearly on a roll here making fast moves. This is a well placed bet in application space. Well Kara Swisher is counting Jerry’s first 100 days in office and remains optimistic of Yahoo rediscovering itself as Yahoo 2.0.

Scott and Satish of Zimbra do have a reason to celebrate tonight and uncork some Champagne. Awesome innovation here guys. Redmond ….knock knock …. see who is at the door.