Citrix to be sold for $16.5B – cash

Gene therapy company Kriya buys fellow Triangle startup Warden Bio, establishes new ‘rare disease’ division


RALEIGH – Citrix will be acquired in an all-cash deal worth $16.5 billion, the company announced today.

According to Tim Minahan, Executive Vice President of Business Strategy at Citrix, the all cash deal will combine TIBCO, which is an existing portfolio company of Vista, with Citrix, the combination of which will create one of the world’s largest software companies.

“The combination of TIBCO with Citrix will be a game changer,” said Minahan.  “Over the past three decades, Citrix has established itself as the leader in remote work, providing secure and reliable access to all the applications and information employees need to get work done, wherever it needs to get done.”

Minahan added that the deal will result in enhancements for the digital workspace for the company’s customers.

Going private

“We believe going private is the best path forward for our shareholders, customers and employees,” said Minahan. “As a private company, Citrix will have increased financial and strategic flexibility to invest in high-growth opportunities that fuel innovation and accelerate our transition to a company with predictable growth and strong profit margins.”

According to an announcement, the company entered a definitive agreement whereby certain affiliates of Vista Equity Partners and Evergreen Coast Capital Corporation will buy the public company in an all-cash transaction, taking the company private.

Minahan confirmed the deal to WRAL TechWire, noting that shareholders would receive $104 per share of company stock. The company statement indicated this would be a 30% premium.

“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,” said Bob Calderoni, Chair of the Citrix Board of Directors and Interim Chief Executive Officer and President, in a statement. “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, and accelerate its ongoing cloud transition.”

The Citrix board of directors unanimously approved the deal, the company statement noted.

Duke Energy, GSK, responding to new letters, proposals, from Elliott

Elliott involved

One of the affiliates of the acquiring firms is Elliott Investment Management, which along with its own affiliates owns about 12% interest in the company “through a combination of outstanding shares of Citrix common stock and derivatives,” the statement noted.

Elliott Investment Management took significant positions in Duke Energy and GlaxoSmithKline in recent years, advocating for changes it said could return better value to shareholders.

Citrix laid off some 50 workers based in Raleigh in November.  The company laid off about 80 workers at its headquarters, according to reporting from the Silicon Valley Business Journal.

The company acquired Raleigh startup ShareFile in 2011 and had plans to add as many as 400 workers in Raleigh in 2016.

This is a developing story and will be updated.

Citrix to lay off about 50 workers in Raleigh as a part of ‘restructuring program’





Source link

About the Author

Kassie Hoffman
Kassie pens down all the news from the world of politics on ANH.