Vista & Evergreen To Acquire Citrix For $16.5 Billion

Published on 31 Jan 2022

Citrix, Acquisition

Additional IT consolidation is occurring to meet increased company demand for "one-stop shops" capable of handling a wide variety of demands in our hybrid workplace. Citrix, the venerable virtualization business that has made a slow transition to cloud computing, is being obtained by Vista Equity Partners and also Evergreen Coast Capital for $16.5 billion (a subsidiary of Elliott Investment Management). Vista aims to combine Citrix with Tibco, which it acquired in 2014 for $4.3 billion. Citrix's debt would be taken as part of the all-cash purchase, according to the corporations.

The offer follows a lengthy period of pure speculation about the company — Citrix has been exploring strategic options for at least the last five months — that culminated last month with the discovery that Vista and Elliott would acquire it for $13 billion, with the most recent speculation being that they would.

Also Read: Tech IPOs In 2021 Double The Amount Raised In 2020

Citrix Investor Share

Citrix is now publicly traded on Nasdaq and will be taken private as part of the deal. Citrix investors will get $104.00 in cash per share, a 24 per cent premium over the closing cost on December 20, 2021, "the last trading day before public rumors of a possible proposal from Vista and Evergreen," the company said. It's worth noting that Evergreen was already a Citrix shareholder before this purchase.

Like venture capital firms, PE businesses are waiting on huge quantities of money that they need to deploy immediately. One apparent solution is to acquire large technology companies that need restructuring and consolidation.

The Citrix & TIBCO Combination

Following the COVID-19 epidemic, many buyers — that is, organizations — are seeking streamlined supplier relationships and improved financial terms for IT services for increasingly distributed workforces. Combining Citrix and Tibco could result in analytics from the latter being cross-sold along with virtualization as well as cloud computing services from the former, at a time when many buyers — that is, enterprises — are seeking more simplified supplier relationships and more financial transparency around IT services for increasingly remote workforces.

"Over the previous 3 decades, Citrix has affirmed itself as the undisputed leader in secured hybrid work." Our industry-leading platform enables workers to securely and reliably access all the apps and information they need to do their job, regardless of their location. Bob Calderoni, chairman of the Citrix board of directors and interim chief executive officer and president, said in a statement, "By partnering with TIBCO, we will accelerate the growth of this platform and the results our customers achieve." 

By partnering with TIBCO, we will be able to operate at a larger scale and offer a broader portfolio of solutions to assist customers in accelerating their digital transformations and realizing the vision of hybrid work." As a private enterprise, we will have greater financial and strategic flexibility, allowing us to pursue high-growth opportunities such as DaaS and accelerate the organization's ongoing cloud migration."

Vista's Plan For Citrix

Before this acquisition, Vista and Citrix had a revolving door: the company paid a private equity consortium $2.25 billion to acquire project management software Wrike a year earlier. Tibco was also believed to be for sale. Still, Vista seems to have taken a different path: integrating it with Citrix may be a more intriguing asset use in light of how companies now evaluate and purchase IT.

"There has never been a more suitable moment to be in the business of connected, intelligent analytics," TIBCO CEO Dan Streetman declared in a statement. "We're pleased to provide our industry-leading solutions to Citrix's worldwide clients."

"The workforce has shifted irreversibly, and organizations worldwide will want real-time access to quicker, more intelligent insights from the growing amounts of data available to them, their workers, and their ecosystems." I'm delighted at the prospect of working with you and look forward to a great cooperation."

Monti Saroya, co-head of Vista's Flagship Fund and senior managing director, said in a statement, "We have long seen Citrix as a real technological pioneer, developing and defining so many categories that have transformed the corporate environment.” As a private firm, Citrix will benefit from increased resources and freedom to capitalize on secular tailwinds favoring modern and secure remote hybrid work to service the combined client base and invest in high-growth areas.


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