Latest FutureLink Purchase: Charon Systems of Canada

FutureLink Corp., continuing its strategy of expanding through acquisitions, said Friday that it agreed to buy closely held Charon Systems Inc. in Canada for $31.4 million in cash and stock.

It would be the Irvine company’s seventh acquisition or planned purchase in recent months.

Earlier this week, FutureLink, which performs computing services for businesses through the Internet, agreed to acquire New York-based Madison Technology Group for $57.5 million in a move to expand into the Northeastern U.S.

The Charon deal would give FutureLink added Internet software expertise. Charon is one of Canada’s top five resellers of Citrix Systems software, which modifies applications so they can be used over the Internet, cell phones and other hand-held digital devices.

FutureLink said it will pay 1.073 million of its shares, or $24.4 million, and $6.95 million in cash for the Toronto-based company, which has 90 employees and generated revenue of $13.6 million in the fiscal year ended July 31.

FutureLink, which installs Citrix software onto companies’ computer systems, bought Charon because it needs more workers to meet demand for the software. Citrix shares have almost quadrupled in the past year.

“There’s a high demand for these services,” said Bill Dering, an analyst at C.E. Unterberg, Towbin. He rates FutureLink a “buy.”

FutureLink has bought five other providers of Citrix Systems software in recent months.

Shares of FutureLink on Friday rose $3.50, or 18%, to $22.75 in Nasdaq trading. In the past year, the shares have risen more than eleven-fold, but have retreated from a high of $36.13 in November.