Citrix Systems Inc. will buy Sequoia Software Corp. for US$184.6 million in cash, paying $5.64 per Sequoia share, the two companies announced Wednesday. Sequoia makes XML-based software for building Web portals.
Citrix, which makes connectivity software for application servers, hopes to add Sequoia's portal products and technology to its portfolio, company executives said. Citrix's MetaFrame software connects client computers to central servers, allowing companies to save software licensing costs by keeping expensive applications on servers, to be accessed as needed through workstations.
"We view the portal server as a core offering ... Sequoia is a leader in that field." said Mark Templeton, president of Citrix. Templeton "We get more products and technology that extends our offerings into the Web and (Microsoft Corp.'s) .NET."
Portal software may improve the experience of the user on those workstations. A portal built with XML can add Web content, Web services and Web applications to those capabilities provided by the applications stored on a server, Templeton said.
Citirx will acquire all outstanding shares of Sequoia in a tender offer expected to commence next week. The majority of shareholders have already agreed to the tender offer. The acquisition has been approved by the board of directors of each company and, subject to customary conditions and approvals, is expected to be completed during the second quarter of the year.
Sequoia (SQSW) ended trading Tuesday at $5 a share on the Nasdaq exchange, making the deal a 13 percent premium over the current price. The company has only been public since July, sliding from $21.75 at its peak near its initial public offering. Citrix (CTXS) ended trading Tuesday at $19.81, down 81 percent from its 52-week high of $106.63.
Citrix Systems, in Fort Lauderdale, Florida, can be reached at +1-954-267-3000, or at http://www.citrix.com/. Sequoia, in Columbia, Maryland, can be reached at +1-410-715-0206 or at http://www.sequoiasoftware.com/.