Nasaq-listed cloud computing and virtualisation tech firm Citrix Systems is set to go private after agreeing to a $16.5 billion buyout deal.
This after the US-based cloud computing and virtualisation tech firm entered into a definitive agreement under which affiliates of Vista Equity Partners, a global investment firm focused exclusively on enterprise software, data and technology-enabled businesses, and Evergreen Coast Capital, an affiliate of Elliott Investment Management, will acquire Citrix in an all-cash transaction valued at $16.5 billion, including the assumption of Citrix debt.
In a statement yesterday, the firm says under the terms of the agreement, Citrix shareholders will receive $104 in cash per share.
It notes the per share purchase price represents a premium of 30% over the company’s unaffected five-day volume-weighted average price as of 7 December 2021, the last trading day before market speculation regarding a potential transaction, and a premium of 24% over the closing price on 20 December 2021, the last trading day prior to media reports regarding a potential bid from Vista and Evergreen.
In connection with the transaction, Vista and Evergreen intend to combine Citrix and Tibco Software, one of Vista’s portfolio companies.
Tibco is an enterprise data management firm, empowering its customers to connect, unify and predict business outcomes.
Citrix notes the combination brings together Citrix’s digital workspace and application delivery suite with Tibco’s real-time intelligent data and analytics capabilities.
It adds the union will create one of the world’s largest software providers, serving 400 000 customers, including 98% of the Fortune 500, with 100 million users in 100 countries.
“Over the past three decades, Citrix has established itself as the clear leader in secure hybrid work. Our market-leading platform provides secure and reliable access to all of the applications and information employees need to get work done, wherever it needs to get done. By combining with Tibco, we will expand this platform and the outcomes our customers achieve,” says Bob Calderoni, chairman of the Citrix board of directors and interim CEO and president.
“Together with Tibco, we will be able to operate with greater scale and provide a larger customer base with a broader range of solutions to accelerate their digital transformations and enable them to deliver the future of hybrid work. As a private company, we will have increased financial and strategic flexibility to invest in high-growth opportunities, such as DaaS [desktop-as-a-service], and accelerate its ongoing cloud transition.”
“Today’s announcement is the culmination of a strategic review process conducted over five months, including extensive outreach to both potential financial and strategic buyers,” continues Calderoni.
“This transaction provides our shareholders with significant immediate cash value. Moreover, this investment by Vista and Evergreen is a testament to the value Citrix has created and the reputation our team has built.”
The transaction, which has been unanimously approved by the members of the Citrix board of directors voting on the matter, is expected to close mid-year, subject to customary closing conditions, including approval by Citrix shareholders and receipt of regulatory approvals.
Upon completion of the transaction, Citrix’s shares will no longer trade on the Nasdaq, and Citrix will become a private company. Citrix will continue to operate under the Citrix name and brand, and will remain headquartered in Fort Lauderdale, Florida.
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