Exhibit 99.1
Citrix Completes Acquisition of NetScaler;
Delivers the ``Best Access Experience'' to Any Resource
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Aug. 16, 2005--Citrix Systems, Inc.
(Nasdaq:CTXS), the global leader in access infrastructure solutions, today
announced it has completed the acquisition of privately held NetScaler Inc., a
global leader in high-performance application networking. The transaction is
valued at approximately $300 million in cash and stock and includes the
assumption of approximately $23 million in unvested stock options.
This acquisition strengthens Citrix's customer value proposition by
improving the performance of any application delivered through the Citrix Access
Platform, the industry's most complete and integrated system that seamlessly
connects users, devices, and networks to enterprise resources. NetScaler
accelerates the performance of Web browser-based applications and e-commerce and
consumer Web sites by as much as 15 times.(a) NetScaler technologies will
enhance the Citrix Access Platform by significantly improving application
security, manageability, reliability, and availability of any application while
lowering the cost of operations.
"With this acquisition, we are extending our best access experience value
to the entire range of Web-based applications, including enterprise,
browser-based, XML Web services, and others," said Mark Templeton, president and
chief executive officer for Citrix.
"With the addition of the Citrix NetScaler Application Accelerator and
Application Switch, the Citrix Access Platform can significantly optimize the
customer's entire set of client/server, Web, desktop, or legacy enterprise
resources. This reduces their IT costs through increased server scalability and
availability, reduced back-end server loads, and increased network bandwidth
efficiency, all while increasing user satisfaction and productivity."
NetScaler, with approximately 200 employees, including research and
development teams in Silicon Valley and India, will continue to operate from San
Jose, Calif., as the Application Networking Group of Citrix. B.V. Jagadeesh,
previously president and chief executive officer for NetScaler, will now report
to Mark Templeton as group vice president and general manager.
In early 2003, Citrix outlined a strategy to expand its coverage of the
overall Access Infrastructure category by penetrating into adjacent high-growth
markets such as collaboration and VPN. Since that time, Citrix has completed
three acquisitions of best-of-breed companies. In 2004, Citrix acquired
Expertcity, now the Online Group, moving the company into the real-time
collaboration, desktop access and on-demand assistance market segments. Citrix
also acquired Net6, now the Gateways Group, extending Citrix's reach in the SSL
VPN (secure socket layer virtual private network) and IP (internet protocol)
telephony market segments. NetScaler is the latest acquisition, adding
innovative application networking technologies, including application
acceleration & optimization; application traffic management, and application
security. These technologies will allow end users to access enterprise resources
faster; they'll improve the service levels that IT departments provide to the
organizations they support; and they'll increase agility for businesses that run
on the Citrix Access Platform.
About Citrix
Citrix Systems, Inc. (Nasdaq:CTXS) is the global leader in access
infrastructure and the most trusted name in secure access. More than 160,000
organizations around the world use the Citrix Access Platform to provide secure,
well-managed access to business information wherever it lives - on demand.
Citrix customers include 100% of the Fortune 100 companies, 99% of the Fortune
500 and 97% of the Fortune Global 500, as well as hundreds of thousands of
smaller businesses and individuals. Based in Fort Lauderdale, Florida, Citrix
has offices in 22 countries and approximately 6,200 channel and alliance
partners in more than 100 countries. For more information visit
http://www.citrix.com.
For Citrix Investors
This release contains forward-looking statements which are made pursuant to
the safe harbor provisions of Section 21E of the Securities Exchange Act of
1934. The forward-looking statements in this release do not constitute
guarantees of future performance. Investors are cautioned that statements in
this press release, which are not strictly historical statements, including,
without limitation, statements concerning the terms and anticipated benefits of
the acquisition, statements concerning the application networking and access
infrastructure markets, statements concerning products and technology including
statements concerning the Citrix Access Platform and the performance of and
speed of access to applications, statements concerning integration plans,
statements concerning expectations as to product demand and market growth, and
management's plans, objectives and strategies, constitute forward-looking
statements. Such forward-looking statements are subject to a number of risks and
uncertainties that could cause actual results to differ materially from those
anticipated by the forward-looking statements, including, without limitation,
the reaction of customers of Citrix and NetScaler to the acquisition; Citrix's
timing and ability to successfully integrate NetScaler's products, domestic and
international operations (including migration of NetScaler to Citrix's systems
and controls) and employees; the introduction of new products by competitors or
the entry of new competitors into the markets for Citrix's and NetScaler's
products; the failure by Citrix to retain key employees of NetScaler; failure to
further develop and successfully market NetScaler's technology and products;
costs related to the acquisition; the success of the company's product lines;
the company's product concentration and its ability to develop and commercialize
new products and services; failure to achieve anticipated revenues and profits
from acquisitions; the success of investments in foreign operations and vertical
and geographic markets; the company's ability to successfully integrate the
operations and employees of acquired companies, and the possible failure to
achieve anticipated revenues and profits from acquisitions; the company's
ability to maintain and expand its core business in large enterprise accounts;
the company's ability to attract and retain small sized customers; the size,
timing and recognition of revenue from significant orders; the effect of new
accounting pronouncements on revenue and expense recognition; the company's
reliance on and the success of the company's independent distributors and
resellers for the marketing and distribution of the company's products and the
success of the company's marketing and licensing programs, including the Advisor
Rewards program; increased competition; changes in the company's pricing
policies or those of its competitors; management of operations and operating
expenses; charges in the event of the impairment of assets acquired through
business combinations and licenses; the management of anticipated future growth
and the recruitment and retention of qualified employees; competition and other
risks associated with the market for our Web-based access, training and customer
assistance products; as well as risks of downturns in economic conditions
generally; political and social turmoil; and the uncertainty in the IT spending
environment; and other risks detailed in the company's filings with the
Securities and Exchange Commission. Citrix assumes no obligation to update any
forward-looking information contained in this press release or with respect to
the announcements described herein.
Citrix(R) is a registered trademark of Citrix Systems, Inc. in the U.S. and
other countries. NetScaler (TM) is a trademark of NetScaler, Inc.
(a) Based on application performance improvements as reported by
independent third party tests conducted by Tata Consultancy Services (TCS).
CONTACT: Citrix Systems, Inc., Fort Lauderdale
Investor Inquiries: Jeff Lilly, 954-267-2886
jeff.lilly@citrix.com
or
Media Inquiries: Eric Armstrong, 954-267-2977
eric.armstrong@citrix.com
or
A&R Partners
Eric Jones, 212-905-6154
ejones@arpartners.com