Wednesday, August 15, 2007

Citrix Buys XenSource

Citrix Systems said this morning that it is acquiring Palo Alto-based XenSource, a maker of virtualization software, for approximately $500M in cash and stock. Citrix said that the acquisition would move it into adjacent server and desktop virtualization markets, and help it to grow by nearly $5M over the next four years. Citrix said that the deal includes the assumption of approximately $107M in unvested stock options. According to Citrix, the deal is expected to add approximately $1M in revenue, and $3M in costs for fiscal year 2007 for the firm, and is expected to add $50M in revenues, and $60-$70M in total cost of revenues and operating expenses for the firm in fiscal 2008. XenSource is venture backed by Accel Partners, Kleiner Perkins Caufield and Byers, New Enterprise Associates, Radar Partners, and Sevin Rosen Funds.