In its largest acquisition to date, Citrix Systems inked a definitive agreement to acquire Expertcity, a leader in providing Web-based desktop access and help desk services, for US$225 million in cash and stock.
The deal dramatically expands Citrix's footprint from the server to the desktop access market and into the online help desk and call centre software service market. Expercity's products include GoToMyPC software service for secure, browser-based access to desktop PCs, and GoToAssist software service, an online help-desk and call-centre assistance offering.
Ross Brown, vice president of worldwide channels and operations for Citrix, said it will take the next three months to figure out how Citrix packages and goes to market with the Expertcity offerings.
'One of the things that led us to the table with Expertcity was our attraction to their [subscription based services] model and their attraction to our channel network,' said Brown.
'We think there are some synergies, but how it is going to get packaged and go to market will be worked out over the next three months. There is a lot of value between us as it relates to the channel.'
Under terms of the agreement, Citrix will acquire Expertcity for approximately US$225 million, payable in approximately 50 percent cash and 50 percent stock.
A US$12 million earn out will be paid to all Expertcity stockholders if certain financial targets are achieved in 2004.
The acquisition has been unanimously approved by the board of directors of each company and is subject to regulatory review and approval by stockholders of Expertcity.
The acquisition is expected to close during the first quarter of 2004 or early in the second quarter of 2004.