Attachment Attachment 1

This document pretains to ITC-T/C-20150407-00086 for Transfer of Control on a International Telecommunications filing.

IBFS_ITCTC2015040700086_1082510

                                        Joint Application for Consent to Transfer Control of
                                    International and Blanket Domestic Section 214 Authority

                                                       Grasshopper Group, LLC, Transferor
                                                             Citrix Systems, Inc., Transferee

                                     ATTACHMENT 1
                             (Streamlined Processing Requested)

        Grasshopper Group, LLC (“Grasshopper” or “Transferor”) and Citrix Systems, Inc.
(“Citrix” or “Transferee”) (collectively, the “Applicants”), pursuant to Section 214 of the
Communications Act of 1934, as amended (the “Act”), and Sections 63.03, 63.04, 63.12, and
63.24 of the Federal Communications Commission’s (“Commission”) rules,1 hereby request
Commission consent to transfer control of the international section 214 and blanket domestic
authorizations held by Grasshopper (FRN No. 0019077973) to Citrix (FRN No. 0022241905).
Under Section 63.04(b) of the Commission's rules, the Applicants are filing a combined domestic
and international application for consent to transfer control to Citrix the blanket domestic and
international section 214 authorizations held by Grasshopper.

       The Applicants seek to consummate the transaction as soon as practicable, provided that
Commission consent has been granted. Accordingly, the Applicants respectfully request
streamlined treatment of this Application pursuant to Sections 63.03 and 63.12 of the
Commission’s Rules.2

    I.     APPLICANTS

         A. Grasshopper

         Grasshopper is a limited liability company organized under the laws of the
Commonwealth of Massachusetts. Grasshopper’s headquarters is located at 197 1st Avenue,
Suite 200, Needham, Massachusetts 02494. Grasshopper offers integrated phone service
solutions, voicemail processing, and other enhanced services to business end-users. Grasshopper
is registered to provide interstate telecommunications services (FCC Filer ID No. 827977) and
was granted international Section 214 authority in FCC File No. ITC-214-20090916-00417.
Grasshopper is authorized to provide competitive resold interexchange long distance
telecommunications services pursuant to registration, public service commission order, or on a
deregulated basis in the States of Arizona, Arkansas, California, Colorado, Connecticut,
Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine,
Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska,
Nevada, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South
Carolina, Texas, Utah, Virginia, and Washington.


1
    47 C.F.R. §§ 63.03, 63.04, 63.12, and 63.24.
2
    47 C.F.R. §§ 63.03 and 63.12.

                                               1


          B. Citrix

        Citrix is a publicly-traded Delaware corporation with its principal business address at 851
West Cypress Road, Fort Lauderdale, Florida 33309. Citrix is leading the transition to software-
defining the workplace, uniting virtualization, mobility management, networking and SaaS
solutions to enable new ways for businesses and people to work better. Citrix solutions power
business mobility through secure, mobile workspaces that provide people with instant access to
apps, desktops, data and communications on any device, over any network and cloud. With
annual revenue in 2014 of $3.14 billion, Citrix solutions are in use at more than 330,000
organizations and by over 100 million users globally. Citrix has two wholly-owned direct
subsidiaries offering telecommunications services, Citrix Communications LLC (“Citrix
Communications”) and Citrix Online Audio LLC (“Citrix Online Audio”), and one wholly-
owned indirect subsidiary, Citrix Communications Virginia LLC.

         Citrix Communications is a Delaware limited liability company, with its principal
business address at 10 Exchange Place, Suite 1710, Jersey City, NJ 07302. Citrix
Communications holds blanket domestic Section 214 authority and international Section 214
authority granted in FCC file no. ITC-214-20130118-00015 to provide facilities-based service
and resale service in accordance with sections 63.18(e)(1) and 63.18(e)(2) of the Commission’s
rules.3 Citrix Communications also is a competitive local exchange and interexchange carrier
authorized to provide intrastate local, intrastate interexchange, and switched access services in
the states of California, Florida, Georgia, Illinois, Maryland, Massachusetts, New York, and
Texas. Citrix Communications also provides interstate interexchange and switched access
service. Citrix Communications Virginia LLC, a Virginia limited liability company, is a wholly-
owned subsidiary of Citrix Communications and is the certificated entity authorized to provide
facilities-based and resold local exchange, interexchange, and access telecommunications
services throughout the Commonwealth of Virginia. Citrix Communications Virginia’s principal
business address is 10 Exchange Place, Suite 1710, Jersey City, NJ 07302.

       Citrix Online Audio is a Delaware limited liability company with its principal business
address at 7414 Hollister Avenue, Goleta, California 93117. Citrix Online Audio’s principal
business is providing audio conferencing services throughout the United States.


    II.      DESCRIPTION OF THE TRANSACTION

        On March 30, 2015 Citrix and Grasshopper entered into a Membership Interest Purchase
Agreement (the “Agreement”) wherein, subject to certain closing conditions, Citrix has agreed to
acquire all of the membership units of the Transferor (the “Proposed Transaction”). Following
the closing, Grasshopper will become a wholly-owned subsidiary of Citrix. Citrix plans to retain
most of Grasshopper’s current management responsible for the day-to-day operations of the
business. Grasshopper will continue to provide service to its existing customers under its blanket
Section 214 and international Section 214 Authorization.


3
    47 C.F.R. §§ 63.18(e)(1) and 63.18(e)(2).

                                                 2


    III.      PUBLIC INTEREST STATEMENT

        Applicants submit that the Proposed Transaction described herein serves the public
interest. The Proposed Transaction promotes competition among telecommunications carriers by
providing Grasshopper with the opportunity to strengthen its competitive position through the
additional experience, perspectives, and resources of Citrix in order to accelerate the growth of
the business. The Proposed Transaction will help create a stronger competitor by bringing
together each organization’s respective strengths. Applicants anticipate that the Proposed
Transaction will enable them to deliver greater value and variety of services to their customers.

       Following the Proposed Transaction Citrix plans to retain most of Grasshopper’s current
management responsible for the day-to-day operations of the business.. The Proposed
Transaction is transparent to customers and will not result in the discontinuance, reduction, loss,
or impairment of service to customers. Rather, as noted, it will enable the Applicants to make
available a greater variety of high-quality, innovative services to their customers.

        The public interest will also be served by expeditious consideration and approval of this
Joint Application. In particular, the Proposed Transaction is aimed at strengthening the
competitive position of the companies by enabling them to offer expanded product and service
portfolios to customers. Prompt action on the Joint Application will ensure the public realizes
these benefits as quickly as possible.


    IV.       SECTION 63.18 INFORMATION (INTERNATIONAL TRANSFER)

        Information addressing the requirements in Section 63.18 of the Commission’s rules4 is
set forth below:

           (a) The name, address and telephone number of the transferor and transferee are:

              Transferor
              Grasshopper Group, LLC
              197 1st Avenue
              Suite 200
              Needham, Massachusetts 02494
              Tel: 800-820-8210 x724
              Fax: 866-466-1618

              Transferee
              Citrix Systems, Inc.
              851 West Cypress Creek Road
              Fort Lauderdale, FL 33309
              Tel: 954-267-3000
              Fax: 954-267-3100

4
    47 C.F.R. § 63.18.

                                                   3


   (b) Transferor is a limited liability company organized under the laws of the
       Commonwealth of Massachusetts. Transferee is a Delaware corporation.


Answer to Question 10 – Sections 63.18(c)-(d)

   (c) Correspondence concerning this Application should be sent to the following:

   Transferor Holder:                             Transferee:

   Dominic Schiavone                              Peter McElligott
   Chief Operating Officer                        Senior Counsel
   Grasshopper Group, LLC                         Citrix Systems, Inc.
   197 1st Avenue                                 851 West Cypress Creek Road
   Suite 200                                      Fort Lauderdale, FL 33309
   Needham, Massachusetts 02494                   Tel: 805-690-3470
   Tel: 800-820-8210 x724                         Fax: 866-466-1618
   Email: dschiavone@grasshopper.com              Email: peter.mcelligott@citrix.com

   With a copy to:

   Michael P. Donahue                             Brita D. Strandberg
   Marashlian & Donahue, LLC                      Harris, Wiltshire & Grannis LLP
   1420 Spring Hill Road, Suite 401               1919 M Street N.W., 8th Floor
   McLean, Virginia 22102                         Washington, D.C. 20036-3537
   Tel: 703-714-1319                              Tel: 202-730-1346
   Fax: 703-563-6222                              Fax: 202-730-1301
   Email: mpd@commlawgroup.com                    Email: bstrandberg@hwglaw.com

   (d) Grasshopper holds blanket domestic Section 214 authority and holds international
       Section 214 authority granted in File No. ITC-214-20090916-00417 to provide resale
       service in accordance with section 63.18(e)(2) of the Commission’s rules. Citrix’s
       affiliate, Citrix Communications, LLC, holds blanket domestic Section 214 authority
       and holds international Section 214 authority granted in File No. ITC-214-20130118-
       00015 to provide facilities-based service and resale service in accordance with
       sections 63.18(e)(1) and 63.18(e)(2) of the Commission’s rules.


Answer to Question 11 – Section 63.18(h)

   (h) The following are the names, addresses, citizenship, and principal businesses of any
       person or entity that directly or indirectly owns at least ten percent of the equity of the
       Applicants.

   Pre-Transaction Ownership of Transferor, Grasshopper


                                             4


The following entities/individuals currently (i.e., pre-transaction) directly or indirectly
own or control 10% or more of Grasshopper:

Name: DH Ventures, LLC
Address: 7225 Bermuda Road Suite E
City, State, Zip: Las Vegas, NV 89119
Citizenship: USA
Principal Business: Investment
Percentage of Ownership: 33.33% of Grasshopper Group LLC

Name: Hauser Family Trust
Address: 7225 Bermuda Road Suite E
City, State, Zip: Las Vegas, NV 89119
Citizenship: USA
Principal Business: Investment
Percentage of Ownership: 16.5% of DH Ventures, LLC

Name: DH 2015 GRAT
Address: 7225 Bermuda Road Suite E
City, State, Zip: Las Vegas, NV 89119
Citizenship: USA
Principal Business: Investment
Percentage Ownership: 73.5% of DH Ventures, LLC

Name: David Hauser 2014 Irrevocable Trust
Address: 7225 Bermuda Road Suite E
City, State, Zip: Las Vegas, NV 89119
Citizenship: USA
Principal Business: Investment
Percentage of Ownership: 10% of DH Ventures, LLC

The sole Manager of DH Ventures, LLC is David Hauser, a U.S. Citizen, 7225 Bermuda
Road Suite E, Las Vegas, NV 89119.

Name: Sia Ventures, LLC
Address: 7225 Bermuda Road Suite E
City, State, Zip: Las Vegas, NV 89119
Citizenship: USA
Principal Business: Investment
Percentage of Ownership: 33.33% of Grasshopper Group, LLC

Name: ST Family Trust I
Address: 7225 Bermuda Road Suite E
City, State, Zip: Las Vegas, NV 89119
Citizenship: USA


                                         5


Principal Business: Investment
Percentage of Ownership: 16.50% of Sia Ventures, LLC

Name: ST 2015 GRAT
Address: 7225 Bermuda Road Suite E
City, State, Zip: Las Vegas, NV 89119
Citizenship: USA
Principal Business: Investment
Percentage of Ownership: 73.5% of Sia Ventures, LLC

Name: Siamak Taghaddos 2014 Irrevocable Trust
Address: 7225 Bermuda Road Suite E
City, State, Zip: Las Vegas, NV 89119
Citizenship: USA
Principal Business: Investment
Percentage of Ownership: 10% of Sia Ventures, LLC

The sole Manager of Sia Ventures, LLC is Siamak Taghaddos, a U.S. Citizen, 7225
Bermuda Road Suite E, Las Vegas, NV 89119.

Name: Sialiana Family Holdings, LLC
Address: 7225 Bermuda Road Suite E
City, State, Zip: Las Vegas, NV 89119
Citizenship: USA
Principal Business: Investment
Percentage of Ownership: 33.33% of Grasshopper Group, LLC

Name: LT Family Trust I
Address: 7225 Bermuda Road Suite E
City, State, Zip: Las Vegas, NV 89119
Citizenship: USA
Principal Business: Investment
Percentage of Ownership: 11.5% of Sialiana Family Holdings, LLC

Name: LT 2015 GRAT
Address: 7225 Bermuda Road Suite E
City, State, Zip: Las Vegas, NV 89119
Citizenship: USA
Principal Business: Investment
Percentage of Ownership: 12.5% of Sialiana Family Holdings, LLC

Name: HT Descendants Trust I
Name: LT Family Trust I
Address: 7225 Bermuda Road Suite E
City, State, Zip: Las Vegas, NV 89119
Citizenship: USA


                                        6


Principal Business: Investment
Percentage of Ownership: 11.5% of Sialiana Family Holdings, LLC

Name: MHT 2015 GRAT
Address: 7225 Bermuda Road Suite E
City, State, Zip: Las Vegas, NV 89119
Citizenship: USA
Principal Business: Investment
Percentage of Ownership: 12.5% of Sialiana Family Holdings, LLC

Name: MH Taghaddos 2014 Irrevocable Trust
Address: 7225 Bermuda Road Suite E
City, State, Zip: Las Vegas, NV 89119
Citizenship: USA
Principal Business: Investment
Percentage of Ownership: 20% of Sialiana Family Holdings, LLC

Name: MH Taghaddos 2014 Annuity Trust
Address: 7225 Bermuda Road Suite E
City, State, Zip: Las Vegas, NV 89119
Citizenship: USA
Principal Business: Investment
Percentage of Ownership: 32% of Sialiana Family Holdings, LLC

The sole Manager of Sialiana Family Holdings, LLC is Mohammad Hossein Taghaddos,
a U.S. Citizen, 7225 Bermuda Road Suite E, Las Vegas, NV 89119

No other person or entity currently (i.e., pre-transaction) holds a 10% or greater interest
in Grasshopper.

Post-Transaction Ownership of Grasshopper by Transferee, Citrix

Upon completion of the Proposed Transaction, the following entities/individuals will own
or control 10% or more Grasshopper:

    Name: Citrix Systems, Inc. (“Citrix”)
    Address: 851 West Cypress Creek Road
    City, State, Zip: Fort Lauderdale, FL 33309
    Citizenship: USA
    Principal Business: Operating Company
    Percentage of Ownership: 100%

Citrix is a publicly-traded company. As of February 15, 2015 Citrix had 159,825,741
shares of Common Stock outstanding. Citrix’s common shares trade on the NASDAQ
under the symbol CTXS and are widely held. Based on a review of Schedule 13G filed
with the Securities and Exchange Commission, there is no owner of more than 10% of


                                          7


        the outstanding shares of Citrix.

        For the Commission’s convenience, ownership chart depicting Citrix’s ownership
        structure before and after the transaction are attached hereto as Exhibit A.


    Answer to Question 12

        Applicants certify that they do not have any interlocking directorates with a foreign
        carrier.

   Answer to Question 13 – Means by which the proposed transfer of control will take
place

        See Section II above.


    Answer to Question 14 – Section 63.18(i)

       (i)       Transferee certifies that it is not a foreign carrier and is not affiliated with any
foreign carrier.


    Answer to Question 15 – Section 63.18(j)

        (j)     Transferee certifies that it does not seek to provide international
telecommunications services to any destination country where: (i) Transferee is a foreign carrier;
(ii) Transferee controls a foreign carrier; (iii) any entity that owns more than 25 percent of
Transferee, or that controls Transferee, controls a foreign carrier in that country; or (iv) two or
more foreign carriers (or parties that control foreign carriers) own, in the aggregate, more than 25
percent of Transferee and are parties to, or the beneficiaries of, a contractual relation affecting
the provision or marketing of international basic telecommunications services in the United
States.


    Sections 63.18(k)-(o)

        (k)     Not applicable.

        (l)     Not applicable.

        (m)     Not applicable.

        (n)    Transferee certifies that it has not agreed to accept special concessions directly or
indirectly from any foreign carrier with respect to any U.S. international route where the foreign



                                                    8


carrier possesses market power on the foreign end of the route and will not enter into any such
agreements in the future.

        (o)    Applicants certify that no party to this Application is subject to a denial of federal
benefits under Section 5301 of the Anti-Drug Abuse Act of 1988, as amended.

    Question 20 - Request for Streamlined Treatment

        (p)    The Applicants seek streamlined processing of this request for consent to transfer
control of Grasshopper’s international Section 214 authorization pursuant to 47 C.F.R. § 63.12
because (1) the Applicants are not affiliated with any foreign carrier in any destination market;
(2) the Applicants are not affiliated with any dominant U.S. carriers whose international
switched or private line services the Applicants seek authority to resell; and (3) the Applicants do
not seek authority to provide switched basic services over private lines to a country for which the
Commission has not previously authorized the provision of switched services over private lines.


    V.     SECTION 63.04 INFORMATION (DOMESTIC TRANSFER)

         Information addressing the requirements in Section 63.04(a) of the Commission’s rules5
is set forth below.

(a)(1) See Section IV.(a) above for the Applicants’ names, addresses and telephone numbers.

(a)(2) See Section IV.(b) above for the Applicants’ places of organization or incorporation.

(a)(3) Contact information for the Applicants and Grasshopper is provided above in Section
IV.(c) above.

(a)(4) See Section IV.(h) above for information regarding the ownership information of the
Applicants.

(a)(5) As evidenced by the signatures to this Application, Applicants certify that no party to this
Application is subject to a denial of federal benefits under Section 5301 of the Anti-Drug Abuse
Act of 1988, as amended.

(a)(6) A complete description of the Proposed Transaction is provided above in Section II.

(a)(7) Transferor, Grasshopper provides integrated phone service solutions, voicemail
processing and other enhanced services to business end-users in all 50 states and the District of
Columbia.

Transferee, Citrix is leading the transition to software-defining the
workplace, uniting virtualization, mobility management, networking and SaaS solutions to

5
    47 C.F.R. § 63.04.

                                                  9


enable new ways for businesses and people to work better. Citrix solutions power business
mobility through secure, mobile workspaces that provide people with instant access to apps,
desktops, data and communications on any device, over any network and cloud. With annual
revenue in 2014 of $3.14 billion, Citrix solutions are in use at more than 330,000 organizations
and by over 100 million users globally. Citrix has two wholly-owned direct subsidiaries offering
telecommunications services, Citrix Communications LLC (“Citrix Communications”) and
Citrix Online Audio LLC (“Citrix Online Audio”), and one wholly-owned indirect subsidiary,
Citrix Communications Virginia LLC.


Citrix Communications is a Delaware limited liability company, with its principal business
address at 10 Exchange Place, Suite 1710, Jersey City, NJ 07302. Citrix Communications holds
blanket domestic Section 214 authority and international Section 214 authority granted in FCC
file No. ITC-214-20130118-00015 to provide facilities-based service and resale service in
accordance with sections 63.18(e)(1) and 63.18(e)(2) of the Commission’s rules. Citrix
Communications also is a competitive local exchange and interexchange carrier authorized to
provide intrastate local, intrastate interexchange, and switched access services in the states of
California, Florida, Georgia, Illinois, Maryland, Massachusetts, New York, and Texas. Citrix
Communications also provides interstate interexchange and switched access service. Citrix
Communications Virginia LLC, a Virginia limited liability company, is a wholly-owned
subsidiary of Citrix Communications and is the certificated entity authorized to provide
facilities-based and resold local exchange, interexchange, and access telecommunications
services throughout the Commonwealth of Virginia. Citrix Communications Virginia’s principal
business office is 10 Exchange Place, Suite 1710, Jersey City, NJ 07302.

Citrix Online Audio is a Delaware limited liability company with its principal place of business
at 7414 Hollister Avenue, Goleta, California 93117. Citrix Online Audio provides audio
conferencing services throughout the United States.

(a)(8) This Application is eligible for streamlined treatment under Section 63.03(b)(2)(i)
because (1) both before and after completion of the proposed transaction, Transferee and its
Affiliates will have a market share in the interstate, interexchange market of substantially less
than 10%; (2) Transferee will acquire direct control of Grasshopper’s facilities and operations
that provide interexchange services exclusively in geographic areas served by dominant local
exchange carriers that are not parties to the transaction; and (3) neither of the Applicants or their
affiliates is dominant with respect to any service.

(a)(9) Concurrent with the filing of this Application, Applicants have filed an application for
approval of the transfer of control of Grasshopper’s international Section 214 authorization to
Citrix.

(a)(10) Not applicable.

(a)(11) The Applicants have not requested any waivers in connection with this Application.




                                                 10


(a)(12) A description of the public interest benefits of the Proposed Transaction are set forth
above in Section III.




                                                11


                            Attachment A

       Pre-Consummation Ownership Structure of Citrix
  (Non-telecommunications-related-regulated Citrix entities omitted)



                               Citrix Systems,
                                  Inc. (DE)



         100%                                               100%



       Citrix Communications                 Citrix Online Audio LLC
              LLC (DE)                                 (DE)



        100%




Citrix Communications Virginia LLC
              (VA)




                                     12


        Post-Consummation Ownership Structure of Grasshopper, by Citrix
               (Non-telecommunications-related-regulated Citrix entities omitted)



                                        Citrix Systems,
                                           Inc. (DE)




      100%                                         100%                             100%



     Citrix Communications           Citrix Online Audio LLC         Grasshopper Group, LLC
            LLC (DE)                           (DE)                          (MA)



                    100%




Citrix Communications Virginia LLC
              (VA)




                                              13



Document Created: 2015-04-06 12:31:51
Document Modified: 2015-04-06 12:31:51

© 2024 FCC.report
This site is not affiliated with or endorsed by the FCC