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Citrix completes XenSource acquisition

IT Industry - Strategy

Citrix has completed its $US500 million acquisition of XenSource, the company founded by the original developers of the open source Zen virtualisation software.

Now the Citrix XenServer product group, the former XenSource business forms the core of Citrix's new virtualisation and management division, which is headed by Peter Levine, former CEO of ZenSource. He will report directly to Citrix president and CEO Mark Templeton.

Citrix reiterated its commitment to the Xen open source community and says it has worked with key contributors to ensure continuing and full transparency, fairness and vendor neutrality.

Other companies contributing to the Xen project include AMD, Dell, HP, IBM, and Intel.
 
Citrix sees the acquisition as a way of expanding beyond application virtualisation into adjacent server and desktop virtualisation. Company officials claim the deal makes Citrix the only company to offer an end-to-end application delivery infrastructure that leverages the method of application, desktop and server virtualisation best suited for the dynamic delivery of applications to any user. 
 
"The combination of Citrix and XenSource brings together application, desktop and server virtualisation to deliver more innovation, choice and flexibility to the market, including our installed base of more than 200,000 customers worldwide," said Templeton. "As application delivery becomes a top issue for IT and the world becomes more dynamic, we find it important to be sure we are providing customers the most cutting-edge technologies out there."

The deal delivered a mixture of cash and Citrix shares to XenSource's former owners.

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