Citrix to sell off for USD 13 billion

According to reports, Elliott Investment Management and Vista Equity Partners are nearing an agreement to acquire Citrix Systems Inc. for around $13 billion. Although no final decision has been made and the timing and price of a deal could still change.

Earlier, Elliott and Vista jointly tapped the loan market to fund the bid for Citrix at USD 104 per share. After making Citrix private, Vista plans to merge it with its data analytics software firm, Tibco.

Citrix makes software that workers use to log onto to their corporate programs virtually, a category of product extensively relied upon during the pandemic as businesses sought quick ways to keep remote workforces connected to central operations. Many are now planning permanent hybrid setups for home and office working, which is expected to grow the market for tools that help make this seamless.

CEO Robert Calderoni took over on an interim basis from David Henshall, who stepped down last month. He had served as CEO since 2017. Elliott Managing Partner Jesse Cohn joined the Citrix board of directors in 2015 and had stepped down last year.

An agreement with Citrix would cap the biggest-ever month for software deals and follow a rampant year in which private equity firms and strategic buyers chased targets. The value of transactions in the sector hit a record $674 billion in 2021; almost double the previous annual high, data compiled by Bloomberg show. Values are up 144% this year, driven by Microsoft Corp.’s mammoth $69 billion takeover of video game publisher Activision Blizzard Inc., the data show.