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Citrix Acquires XenSource For $500M

By Sean Michael Kerner

“The virtualization market got another shot in the arm one day
after the blockbuster VMware IPO, with the $500 million dollar
acquisition of virtualization vendor XenSource by Citrix.

“The acquisition is expected to close in the fourth quarter of
2007 and includes a combination of cash and stock. XenSource only
has 650 paying customers, but the idea with acquisition is that
XenSource’s products will get wider distribution through the Citrix
sales channel.

“‘One of the dream channels for us is the Citrix channel,’
XenSource CEO Peter Levine said on a morning conference call. ‘All
our partners carry it [Citrix] now and a lot wanted to create
server virtualization practices…'”

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