Elliott Management and Vista Equity will turn Citrix back into a private company. They have some $16.5 billion ready to take Citrix off the stock market.
Elliott Management and Vista Equity are taking Citrix off the stock market. To do so, the two companies want to pay $16.5 billion. That’s quite a bit more than the $13.5 billion previously talked about. The Financial Times initially reported the buyout as a rumor, but Citrix has since officially confirmed the news. Shareholders will receive $104 per share.
Difficult cloud transition
Elliott invested in Citrix in 2015 but is not satisfied with the way the company is running. Citrix itself has missed opportunities in recent years. Although the pandemic brought enormous opportunities for digitalization, the organization failed to capitalize on them sufficiently. In October, CEO David Henshall therefore had to resign.
However, Citrix specializes in telecommuting, which is very topical today. However, the biggest opportunities currently lie in the cloud, and Citrix’s transformation into a cloud company is struggling.
Tibco
Elliott and Vista hope to get Citrix back on track without pressure from the stock market. The investment funds plan to combine Citrix with Tibco. Vista bought Tibco back in 2014. That company deals in business intelligence and would have several synergies with Citrix.
Elliott already has a 10 percent stake in Citrix today. Investors are reacting positively to the news. The acquisition should be completed in the second half of 2022.
This article originally shipped on 31/01 at 8:30 a.m. based on credible rumors. Citrix has since confirmed the news and released some additional details.