Citrix Buys ViewSoft for $32m to Offer Fatter Thin Clients

Computergram International, July 13, 1999

Citrix Systems Inc has agreed to acquire little known software house ViewSoft Inc, in a transaction worth around $32m. Provo, Utah-based ViewSoft has a development tool that can produce Java interfaces that resemble Windows, Macintosh, or even green screen terminals, combined with fully-functioning C Windows applications residing on the server (CI No 3,355).

Citrix says it will use the technology to extend its NT multi-user server hosting software to web-enabled and multi-tier applications, supporting Microsoft DCM and DNA component architectures, as well as those supporting Java front-ends. CEO Mark Templeton said that many web applications currently forced a choice "between application thinnes and richness." The ViewSoft software will enable developers to add more interactivity to thin-client interfaces, he said, making them more comparable in appearance and functionality to Windows applications.

ViewSoft, originally founded in 1991 to commercialize object-oriented programming technologies, partnered with application development firm Dynasty Technologies Inc in 1997 to produce a Java front-end. It also had a relationship with Tandem Computers Inc. Both originally took small equity stake, though Tandem later sold its stake to Dynasty.

Citrix said it expects to allocate a portion of the price to in-process research and development, and will post a one time charge of around $2m to its quarter ending on September 30. Packaging, pricing and availability will be announced later.