CTXS to acquire SQSW for $5.64/share. Guess this explains the runup in SQSW over
the past few days (gee, though, it's hard to believe that anybody might've actually
taken advantage of "inside information" to accumulate before the announcement.
That's not allowed, is it? -- and we all know how scrupulous the regulators are about
those rules)...ALSO NOTE that CTXS has reaffirmed its recent guidance, and had
a conference-call set for 8:30 this morning EST (in other words, right now) to discuss the
SQSW deal (more on that at biz.yahoo.com.
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Wednesday March 21, 7:30 am Eastern Time
Citrix to Acquire Sequoia Software to Extend 'Virtual Workplace' Vision; Sequoia's
XML-based Portal Technology to Extend Citrix Application Services Platform to Include
Web Applications and .NET New Offerings Will Expand Citrix Solutions, Customers
and Channels
FORT LAUDERDALE, Fla. and COLUMBIA, Md., March 21 /PRNewswire/ -- Citrix
Systems, Inc. (Nasdaq: CTXS - news), a global leader in application server software
and services, and Sequoia Software Corporation (Nasdaq: SQSW - news), the leading
provider of XML-based portal software, today announced that the two companies have
signed a definitive agreement for Citrix to acquire Sequoia. The all-cash transaction,
structured as a $5.64 per share tender offer, is valued at $184.6 million.
By adding Sequoia's portal products and technology to Citrix's existing application
serving software, Citrix will be uniquely positioned to deliver a more complete
application services platform -- one that gives users secure access to any information
source, business process or application, whether it's a Web, Windows® or UNIX®
application.
``Since we introduced the Citrix NFuse application portal one year ago, customers
have asked us to extend its capabilities even further to include Web content, Web
applications and Web services,'' said Mark Templeton, president of Citrix. ``The portal
is the aggregation point for applications and information from disparate systems which
makes it an essential piece of the complete solution, and therefore important for Citrix
to provide. Additionally, this move will be instrumental in helping our channel deepen
their customer relationships and grow their integration and implementation revenues.
The acquisition of Sequoia gives us a robust suite of XML-based products and
technologies to do exactly what customers want - to make it easy to use any device to
find and get connected to any information from anywhere.''
Mark Wesker, president of Sequoia, said the combination of the two companies would
satisfy a broad range of customer needs, spanning a desire to ease application access
to creating a true digital workplace.
``Citrix MetaFrame is the world's application serving standard,'' said Wesker. ``Over
100,000 customers use MetaFrame to reap the benefits of application serving. By
joining forces with Citrix, we will be able to offer customers a unified solution for
creating the virtual enterprise, where employees, partners, customers and suppliers
can access and interact with any information that is relevant to their needs from any
device on any network.''
David Weiss, vice president of marketing for Citrix, said both customers and Citrix's
partners would benefit from the acquisition. He said Sequoia's and Citrix's products,
personnel and sales model greatly complement each other and help Citrix execute on
one of its key growth strategies -- expanding the use of application serving within the
enterprise.
``With both MetaFrame XP and Sequoia XPS(TM) portal software, enterprise
customers will be able to look to our systems integrators and channel partners as a
single source for two key parts of their strategic applications platform,'' Weiss said. ``By
creating new products based on the same technology, we can also deliver the same
benefits to mid-market customers, a segment already well served by our channel.''
Extending the Virtual Workplace
Templeton said the acquisition fits perfectly into Citrix's vision of a ``Virtual Workplace''
enabled by application serving software.
``Our core strategy, ever since our founding, has been to provide infrastructure
software to allow people to easily connect to any application from anywhere,
regardless of the device or network connection,'' Templeton said. ``Historically, most of
our customers have used our software to deploy Windows applications, and that is still
true today. But with the explosion of bandwidth and connectivity brought about by the
Internet, plus Web technologies such as Java and HTML, we believe CIOs are looking
for flexibility to choose the right combination of Windows and Web applications to best
suit their needs.
``Using Sequoia's XML-pure portal technology, we will help our customers get the best
that the Windows and Web worlds offer, and aggregate digital information into a 'Virtual
Workplace' -- the promise of access to any application over any network and any
device, quickly, easily, securely and cost-effectively.''
Terms of the Deal
Under the terms of the merger agreement signed today, Citrix will acquire all the
outstanding shares of Sequoia common stock at $5.64 per share for approximately
$184.6 million in an all-cash tender offer. The tender offer is expected to commence
the week of March 26, 2001. The acquisition has been approved by the board of
directors of each company and, subject to customary conditions and approvals,
including Hart Scott Rodino, is expected to be completed during the second quarter.
Holders of a majority of the outstanding shares of Sequoia have agreed to tender their
shares in the tender offer.
While the company expects that the transaction will be dilutive to earnings in fiscal
2001, it is expected to be accretive to earnings in fiscal year 2002.
Citrix will host a conference call at 8:30 a.m. eastern time, Wednesday, March 21, to
discuss the terms of the Sequoia Software Corporation transaction and its corporate
strategy involving the acquisition. Participants are encouraged to listen to the call via
the Internet at citrix.com or www.vcall.com. The conference call
may also be accessed by dialing 212-547-0322, or 888-972-9924. The password is
Citrix. A replay of the conference call will be available through March 27, 2001, by
dialing 402-998-1620, and via the Internet at citrix.com .
About Sequoia
Sequoia Software Corporation is the leading provider of XML-pure portal software.
Sequoia's flagship product, XPS, drives the evolution of business toward true
e-business, helping companies link systems and people, automate critical processes,
and strengthen relationships across the value chain. Sequoia's customers and partners
include Baker Robbins & Company, Baylor Health Care System, BITMO, Cap Gemini
Ernst & Young, General Electric Power Systems Division, Johns Hopkins School of
Public Health, Kaiser Permanente, Lehman Brothers, Lockheed Martin, SAIC, and
Software AG. For e-business solutions that let you do more in less time visit
www.sequoiasoftware.com or call Sequoia toll free (888) 820-7917.
About Citrix
Citrix Systems, Inc. is a global leader in application server software and services that
offer ``Digital Independence'' -- the ability to run any application on any device over any
connection, wired, wireless and Web. Citrix solutions enable organizations of all types,
from major enterprises to emerging application service providers (ASPs), to reach more
users, with more applications, in more locations - and achieve this with greater speed,
reliability and cost-effectiveness. Citrix offerings, including MetaFrame application
server software, NFuse application portal software, management products and
Independent Computing Architecture (ICA®), a core application server technology,
have been widely adopted by the corporate mainstream to achieve key business goals.
The firm, which markets its solutions through value-added resellers, system integrators
and OEM licensees, is headquartered in Fort Lauderdale, Fla. Citrix is traded on The
Nasdaq Stock Market(SM) under the symbol CTXS and is part of the Standard &
Poor's 500 Index. For more information, please visit the Citrix Web site at
citrix.com. |
