Citrix to acquire XenSource for $500m

NEW DELHI: Citrix Systems today announced that will acquire Palo Alto-based XenSource for approximately $500 million in a combination of cash and stock. The deal also includes the assumption of approximately $107 million in unvested stock options.

Both the company’s boards of directors have approved the acquisition. The acquisition is expected to be completed by the fourth quarter of 2007.

The acquisition enables Citrix to move into the adjacent server and desktop virtualization markets. Peter Levine, CEO, XenSource, will lead the new division, reporting directly to Mark Templeton, Citrix president and CEO.

“Today is a great day for the virtualization market because customers will now have a strong alternative that is open, proven and backed by one of the most successful end-to-end software infrastructure leaders in the entire industry,” said Peter Levine, CEO of XenSource.

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