[NEOCUG] Citrix buys GOToMyPC

  • From: "Jim Kenzig http://thethin.net" <jimkenz@xxxxxxxxxxxxxx>
  • To: <Thinnews@xxxxxxxxxxxxx>, <neocug@xxxxxxxxxxxxx>
  • Date: Fri, 19 Dec 2003 08:07:45 -0500

WOW!
JK

CITRIX TO ACQUIRE EXPERTCITY, LEADER IN WEB-BASED DESKTOP ACCESS WITH
GOTOMYPC AND GOTOASSIST


     Deal Expands Citrix Access Infrastructure to Create the Most
           Complete Secure Access Solutions from One Source

Citrix Systems, Inc. (CTXS), today announced it has signed a definitive
agreement to acquire Expertcity, Inc., the market leader in Web-based
desktop access as well as a leader in Web-based training and customer
assistance products. The transaction is valued at approximately $225 million
in cash and stock, with an additional $12 million in stock to be paid to
Expertcity stockholders, contingent on achieving certain financial
milestones.

The acquisition expands Citrix's portfolio of access products to include
Expertcity's popular GoToMyPC(R) software service for secure, browser-based
access to desktop PCs from anywhere, over the Web. The acquisition also adds
Expertcity's market-leading GoToAssist(TM) software service, which provides
online help-desk and call-center assistance, as well as training and
customer collaboration over the Web. Citrix will leverage Expertcity's
e-commerce infrastructure and expertise in online marketing, selling and
fulfillment. Citrix said the combined business will help accelerate its
growth in the access infrastructure market, which is expected to grow to
$8-10 billion in the next four to five years.

"With over 120,000 customers, Citrix access infrastructure is becoming the
corporate standard for on-demand access to enterprise applications and
information from anywhere," said Mark Templeton, president and chief
executive officer for Citrix. "This acquisition extends our on-demand access
value to include the applications and information that live on individual
desktop PCs. Our customers will get scalable, secure and managed access
solutions for even greater information security, employee productivity, and
enterprise agility."

Expertcity is a privately held company based in Santa Barbara, Calif. with
approximately 200 employees. Its award-winning GoToMyPC products allow users
to instantly access home or office PCs remotely from any location. Users
need only an Internet connection; no firewall configuration is necessary.
GoToMyPC is preconfigured with industry-standard protocols, including
advanced encryption standards (AES), dual password requirements and
end-to-end user authentication to ensure high levels of security and
privacy. GoToMyPC Corporate features advanced management and control options
to protect the integrity of enterprise networks including one-time
passwords, a two-factor authentication scheme, RSA SecurID integration and
comprehensive control for real-time monitoring and reporting. Numerous
Fortune 100 companies including Cardinal Healthcare, Cisco Systems, Pfizer,
TIAA-CREF and Verizon use GoToMyPC.

GoToMyPC software service plans are available for customers of various
sizes, including individuals, small businesses and enterprises.

GoToAssist is a Web-based software service that enables a broad range of
solutions, including remote technical support for helpdesks and call
centers, corporate training, product demonstrations and customer
collaboration. It enables highly secure, permission-based sharing of desktop
PC screens and rapidly integrates into any existing infrastructure. Many
prominent corporations including Best Software, Cablevision, Intuit,
Microsoft Business Solutions and Siemens are GoToAssist customers.

"Today, Citrix products are used by nearly 50 million end users in the
enterprise, and with this acquisition, Citrix gains an efficient way to
reach individuals, professionals and SOHO customers through Web-based
selling and fulfillment," Templeton added. "Most people think of Citrix as
being exclusively focused on the server. The fact is, customers need access
to information, regardless of where it lives. We are excited about offering
customers the most complete and secure solution available for accessing
enterprise applications and desktop resources from one vendor."

"Citrix and Expertcity share the same goal of making the work environment
more flexible and efficient by providing easy, secure and instant access to
applications and information," said Andreas von Blottnitz, president and
chief executive of Expertcity. "Our complementary offerings, coupled with
the similarities in our cultures, allow for synergies and accelerated
growth. By working together, we will deliver more choice and flexibility to
our customers and partners, and increase adoption of Citrix access
infrastructure."

Terms of the Deal

Under terms of the definitive agreement, Citrix will acquire Expertcity for
approximately $225 million, payable in approximately 50 percent cash and 50
percent stock. A $12 million earnout will be paid to all Expertcity
stockholders if certain financial targets are achieved in 2004. Assuming
that the transaction closes as expected. It is expected to be $0.03 to $0.04
dilutive to Citrix's earnings per share in the first half of fiscal year
2004, as adjusted to exclude the effect of a one-time expense charge for the
value of Expertcity's in-process research and development (which will result
in an additional $0.05-$0.10 dilution to Citrix's earnings per share on a
GAAP basis), and neutral to earnings in the second half of 2004.

The acquisition has been unanimously approved by the board of directors of
each company and is subject to regulatory review and approvals, including
under the Hart-Scott Rodino Act, approval by stockholders of Expertcity, and
other customary conditions and approvals. The acquisition is expected to
close during the first quarter of 2004 or early in the second quarter of
2004.

The acquisition is intended to be tax free to stockholders of Expertcity
with respect to the stock consideration the stockholders will receive.
Lehman Brothers acted as financial advisor to Citrix, and Credit Suisse
First Boston acted as financial advisor to Expertcity.




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