Elliott and Vista Equity boost cloud ambitions with $16.5 billion Citrix deal

The Citrix logo. Courtesy of Citrix Systems

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Jan 31 (Reuters) – Software company Citrix Systems said on Monday it had agreed to be taken private for $16.5 billion, including debt from Elliott Management and Vista subsidiaries Equity Partners, who are looking to tap into the pandemic-driven boom in cloud computing.

Under terms of the deal, Citrix shareholders will receive $104 in cash per share, implying a net worth of nearly $13 billion and confirms a Sunday Reuters report on the joint offering. Read more

That’s a 24.3% premium to Citrix’s close on Dec. 20, when talks of a joint bid were first reported. However, it is at a 1.5% discount to the stock’s last close.

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Shares of Citrix fell 3.6% to $101.8 before Monday’s bell.

“Today’s announcement is the culmination of a five-month strategic review process, including extensive outreach to potential financial and strategic buyers,” interim chief executive Bob Calderoni said in a statement. .

The company, which provides remote work solutions and business networking software and, according to its website, counts 98% of Fortune 500 companies among its customers.

But it failed to capitalize on the boom in virtual work during the COVID-19 pandemic because it spent too much on its sales force and too little on its channel partners.

This led Citrix shares to fall 23% last year.

It was exploring a potential sale in September, according to a Bloomberg News report that cites people familiar with the matter. Read more

Buyers include Evergreen Coast Capital, a subsidiary of Elliott and other Vista Equity affiliates. They intend to combine Citrix and Vista’s holding company, TIBCO Software, a data analytics company to meet the needs of businesses adopting hybrid work models.

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Reporting by Chavi Mehta in Bengaluru; Edited by Ramakrishnan M.

Our standards: The Thomson Reuters Trust Principles.

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