Business software maker Citrix Systems announced on Thursday, June 7, that it would acquire privately owned company Bytemobile, which develops data and video optimization products for mobile network operators, for an undisclosed amount. Through this acquisition, Citrix will gain access to 130 carriers in 60 countries, the company said in a statement.
Citrix traditionally develops virtualization software enabling a single computer to perform the tasks of several machines, while Bytemobile makes software for mobile network operators, enabling them to manage and condense data and video traffic. According to Citrix, the acquisition is expected to close during the third quarter of 2012.
Mobile operators have experienced a whopping surge in network traffic, most of which is generated by consumers watching video. iPhone and Android-based smartphone owners account for the largest part of network traffic, driving the demand.
Combined Solutions
"Citrix and Bytemobile will be able to offer operators combined solutions that deliver a high quality user experience to mobile subscribers, while helping operators manage the exponential growth of mobile network traffic," Citrix said in a statement, as cited by Reuters.
A partnership between Citrix and Bytemobile is not something new. The two companies already had a joint venture that bundled Bytemobile's Smart Capacity technology with Citrix' NetScaler line of cloud networking solutions, offering features such as data compression, load balancing, content caching, and SSL acceleration. Bytemobile's Smart Capacity technology is used for video and Web optimization, bandwidth throttling, and traffic management.
"The cloud and mobile revolutions are rapidly converging, and mobile operators are at the heart of this convergence," said Klaus Oestermann, Citrix' group vice president and general manager of cloud networking. "With the integration of Bytemobile technology, products and intellectual capital, Citrix will be uniquely positioned to be a leader in the global mobile data and video infrastructure market in the LTE era."
Definitive Agreement
The terms of the acquisition were not disclosed, but both companies' boards of directors have approved the deal. The acquisition is subject to customary closing conditions, including approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, according to MarketWatch. After the deal closes, Bytemobile will form a new Service Provider Platforms team within the Citrix Cloud Networking division.
"The integration of Bytemobile will enable us to extend our value proposition to the edge of the network, bringing content closer to the end user," said Oestermann. "The benefits to network operators and their subscribers include faster, more efficient, more reliable, and more manageable networks; higher performance resulting in better service and a better user experience; and scalability to process growing volumes of data traffic at a much lower cost," he added.
"We are excited about the significance of this transaction for the industry, our customers, our employees, and our stockholders," said Bytemobile COO Chris Koopmans. "With the rollout of LTE and other next-generation networks, the mobile data market is poised to grow dramatically in the coming years. The addition of Bytemobile solutions to the Citrix portfolio will accelerate the fulfillment of our division and investment in the future of the industry."
