Citrix Systems Inc. (CTXS - Analyst Report), a leading provider of virtualization, networking and cloud computing solutions has acquired New Zealand-based startup Beetil, which offers cloud-based customer service management software.
Beetil prepares user friendly customer assistance software that provides powerful incident tracking, self service, configuration and change management functions, which in turn help its clients to reduce their technological costs. However, none of the companies has disclosed the financial details of the acquisition.
Citrix continues to grow as virtualization and cloud computing becomes essential for business enterprises to reduce costs and for exploring the markets throughout the world. Instead of installing their own virtualization and data center set up, the corporate bodies are now sharing the cloud computing platform of dedicated providers like Citrix and VMware Inc. (VMW - Snapshot Report). Research firm Gartner estimated that desktop virtualization will be applied in 100 million personal computers by 2013.
We believe that successful integration of Beetil with Citrix’s cloud-based product offering GoToAssist will provide a flawless and essential set of cloud-based services like remote support, monitoring and service desk management under one roof. Additionally, it will help the company’s clients to manage their IT support better than before thus delivering operational efficiency, and will consolidate Citrix’s position as a market leader in delivering innovative cloud-based support service.
The current Zacks Consensus Estimate for Citrix Systems Inc. is pegged at 49 cents for the third quarter of 2012 with a growth rate estimate of 0.77%. For 2012, the Zacks Consensus Estimate stands at $2.15 with a growth rate of 5.97% while for 2013, the Zacks Consensus Estimate stands at $2.53 with a growth rate of 17.78%.
We retain our long-term Neutral recommendation on Citrix Systems Inc. Currently, it has a Zacks #3 Rank, implying a short-term Hold rating.