Citrix announced today that they are acquiring XenSource for $500 million. I don’t personally understand such a high price for an acquisition where the existing company had less than $5 million in revenue last year. Also, Citrix has stated that they expect this acquisition to result in $50 million in revenue for fiscal year 2008, but at an expense of $60-70 million in total cost of revenue and operating expenses. Again, I don’t get it, but I’m keeping my fingers crossed…considering I actually own shares in Citrix
There’s additional commentary over at Brian Madden’s site here.