Citrix intends to buy XenSource virtualization company for $500 million

One day after a spectacular public offering of virtualization company VMWare, Citrix Software said that it intends to acquire open-source virtualization company XenSource for about $500 million. Citrix makes so-called "thin client" software that delivers business applications from servers to desktop computers. By acquiring XenSource, the company intends to move into the adjacent server and […]

One day after a spectacular public offering of virtualization company VMWare, Citrix Software said that it intends to acquire open-source virtualization company XenSource for about $500 million.

Citrix makes so-called "thin client" software that delivers business applications from servers to desktop computers.

By acquiring XenSource, the company intends to move into the adjacent server and desktop virtualization market. The acquisition will be financed through a combination of stock and cash and includes the assumption of $107 million in on a vested stock options.

Xen lets a single computer run multiple operating systems simultaneously, which is useful today as a way to replace servers with one, more efficiently used computer. The company's software is included in the two most used Linux server distributions from Red Hat and Novell.

Citrix, VMWare, Virtualization, Open-Source, Open source, XenSource, Corporate News

Source:→ C|net News Blog