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Sun 5 Jun 2005 04:00 AM

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Citrix buys NetScaler

In the latest in a series of high profile initiatives in the network optimisation space, software giant Citrix has bought NetScaler. The move follows Cisco’s acquisition of FineGround, HP’s licensing deal with Riverbed and Juniper snapping up both Peribit and Redline Networks.

In the latest in a series of high profile initiatives in the network optimisation space, software giant Citrix has bought NetScaler. The move follows Cisco’s acquisition of FineGround, HP’s licensing deal with Riverbed and Juniper snapping up both Peribit and Redline Networks.

Citrix has signed a definitive agreement to acquire privately held NetScaler, a leader in high-performance application networking. The transaction is valued at approximately US$300 million in cash and stock, plus the assumption of approximately US$23 million in unvested stock options. The deal is expected to close in Q305 subject to customary closing conditions including shareholder and regulatory approvals.

NetScaler, founded in 1998, is based in California and has approximately 200 employees, with research and development teams in Silicon Valley and India. The company has a number of high profile customers such as Google, Amazon, Dow Jones, Earthlink, E*Trade, MSN and Ticketmaster. NetScaler estimates that up to 75% of all internet users go through a NetScaler system each day.

“This is an exciting acquisition for Citrix,” says Mark Templeton, president and CEO for Citrix. “We’re aggressively pursuing the strategy we outlined in early 2003 to expand into high-growth markets adjacent to the access infrastructure market through building and acquiring best of breed access infrastructure technologies,” he adds.

Citrix hopes to leverage the acquisition to help existing customers further lower costs and increase the performance of their Citrix Presentation Server systems. It will also help Citrix to offer greater performance and lower costs for customers deploying web-based applications and services. Citrix will also use the NetScaler products to extend the Citrix Access Platform and provide a range of application networking solutions.

Citrix sees the application networking as a fast-growing, emerging segment of the overall networking market and expects it to grow to about US$3 billion by 2007.

Citrix intends to allow NetScaler to run fairly autonomously and expects to retain most of its 200 staff.

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