Florida-based Citrix Systems Inc. has acquired venture capital-backed start-up company Vapps Inc. for $26.6 million. Citrix Systems makes software and machinery that helps companies remotely manage their applications.
According to latest sources, if Vapps continues to perform well, it will get an additional $4.4 million funding from Citrix. The deal is a small one, but Azure Capital Partners, the largest investor in Vapps, said that it received a 3.6 times return on its investment over 18 months. It amounts to a 125 percent internal rate of return for Azure. The acquisition marks Azure Capital's third exit this year.
Last month, eBay Inc. bought Azure-funded Bill Me Later, an online payments service, for $945 million. While in January, Azure sold WorldWide Packets to network solutions provider Ciena Corp. for $300 million. Vapps, Inc. is a technology company utilizing its patent-pending audio conferencing technology to provide managed audio conferencing solutions to the SMB, Enterprise and Service Provider markets.
Citrix disclosed the acquisition in its Nov 5 regulatory filing. Shares of Citrix closed down 61 cents or 3 percent at $22.95 on Nasdaq. The 52-week high for the stock was $39.32 on Nov. 15 and a 52-week low of $19 on Oct. 10.