Historically, our worst acquisition was Sequoia Software. It was a lot of money for something that really didn’t pan out. The official number was $184 million but I believe it was a bit higher.
Internally we saw this a failure for a few different reasons. Probably the most painful lesson is that we could not successfully integrate a company like this fully into our operation. I heard statements that engineering actually hindered the process of integration but not necessarily intentionally. Future acquisitions would be based on attempting to keep the existing company structure in place. In some cases, this meant creating new divisions.
There was a lot of hype around portals in 2001 and it later turned out that the market would become fairly common place. On top of that we did not have the most ideal portal. The attempt was to create a portal line independent of MetaFrame but in the end it really became a portal for MetaFrame.
I don’t think Citrix got its money value out of this deal. As a result, Citrix would end up becoming much more cautious in future acquisitions.
Citrix to Acquire Sequoia Software to Extend “Virtual Workplace” Vision
Citrix and Sequoia Software today announced that the two companies have signed a definitive agreement for Citrix to acquire Sequoia
FORT LAUDERDALE, Fla. and COLUMBIA, Md. — 3/21/2001 — Citrix Systems, Inc. (Nasdaq:CTXS), a global leader in application server software and services, and Sequoia Software Corporation (Nasdaq:SQSW), 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.