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Citrix: Acquisition Target for SAP, Oracle

Posted on Wednesday, Jun 20th 2007

I have recently written several pieces on the Enterprise 3.0 and the Extended Enterprise trend. In this article, I am going to cover a company that aligns well with the trends of collaboration and the Extended Enterprise, a space that has really heated up of late, following Cisco’s acquisition of Webex.

Today, businesses are no longer limited to one location or office. Employees need to access data while on the move or even while working from home. More and more work is being outsourced and there is a need to share and access data and applications throughout the extended e(n/x)terprise.

Citrix (Nasdaq: CTXS) provides this flexibility of working from anywhere while ensuring the security of the data. It provides solutions that can control how users connect and how they access and use applications from various locations. Citrix seems to have cracked the Extended Enterprise phenomenon by extending the enterprise beyond its physical walls.

Citrix provides on-demand applications for remote desktop access, Web conferencing, and online collaboration. Its products include Citrix® GoToMyPC® for secure remote PC access, Citrix® GoToAssist™ for live remote support, Citrix® GoToMeeting® for online meetings, and Citrix® GoToWebinar™ for Web events. Citrix® GoToWebinar™ won the 2006 Frost & Sullivan award for “Best New Web Conferencing Service” along with awards from LAPTOP Magazine Editors’ Choice, TMC Labs Innovation. It also won the 2007 SC Magazine Reader Trust Award for IPSec/SSL VPN Solution.

Though there are numerous competitors for individual Citrix products, as an integrated provider of on-demand access to networks, data, and applications, the company’s position is strong. Citrix has been aggressive in acquiring complimentary technology to maintain its leadership position. Major acquisitions include Expertcity (2003), Net6 (2004), Netscalar (2005), Reflectent (2006) and Orbital Data (2006). In the first quarter of 2007, Citrix acquired Ardence Inc. to improve its application delivery infrastructure for Windows-based applications.

For fiscal year 2006, Citrix reported annual revenues of $1.134 billion, compared to $909 million in 2005, a 25% increase. For fiscal year 2007, the company expects net revenues to be around $1.31 billion. For the first quarter of 2007, Citrix reported revenues of $308 million, compared to $260 million in the first quarter of 2006, an 18% revenue growth.

Its stock has done well, especially in 2007. Its current market cap is $6.19 billion with its stock trading around $34.

Furthermore, SAP and Oracle are 2 large companies in the Enterprise Software space who need a serious collaboration strategy that includes Web Conferencing, Desktop Sharing, and such, and Citrix can be an excellent acquisition for either of them.

Citrix Systems, Inc. (CTXS)

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I agree with your comments about Citrix. Our company has been using the gotowebinar service for a few months now and it is by far the best dollar-for-dollar value on the webconferencing market today.

Matt Zembruski Wednesday, June 20, 2007 at 11:16 AM PT

[…] the SAP camp. However, what I don’t expect to see, is too many acquisitions in the space. I did suggest Citrix as one exception, but players like Rightnow, Omniture, Taleo, Concur, etc. are more likely to find their exits in the […]

Sramana Mitra on Strategy » Blog Archive » SAP and Enterprise 3.0 Wednesday, June 27, 2007 at 7:49 AM PT

[…] Enterprise 3.0 journey will be organic, Oracle’s is likely to be via acquisitions. Citrix, Rightnow, Omniture, Taleo, Concur, etc. are very likely to find their exits in the arms of Oracle. […]

Sramana Mitra on Strategy » Blog Archive » Oracle and Enterprise 3.0 Friday, June 29, 2007 at 7:28 AM PT

[…] wrote about Citrix being an acquisition target for Oracle recently on the grounds of their on-demand collaboration product suite. Since then, I did a bit of digging […]

Sramana Mitra on Strategy » Blog Archive » Citrix’s Collaboration Business Offers Strategic Options Tuesday, July 3, 2007 at 7:27 AM PT

[…] (CTXS) reported its first quarter results last week. Earlier coverage is available here and here. Revenue was $377 million, up 22% while net income dipped 10.5% due to higher costs to $34 […]

SaaS Roundup - Sramana Mitra on Strategy Monday, May 5, 2008 at 2:54 AM PT

[…] *Citrix: Acquisition Target for SAP, Oracle : Citrix, another firm that provides solutions for remote access. *Top Seven SaaS Startups *Trend Radar 2008: SaaS in the Enterprise […]

Deal Radar 2008: NTR Global - Sramana Mitra on Strategy Thursday, September 11, 2008 at 9:57 AM PT

We have the new citrix at work. This has drawn me to the stock a little but feel it is a little over priced at the moment.

stock trading news Tuesday, July 6, 2010 at 1:30 PM PT