Citrix Systems, the long-time software developer based in Fort Lauderdale, Florida, has reached an agreement to be taken over by two large investment firms for $16.5 billion.
The company’s loss of independence will result in a merger with TIBCO Software, a business intelligence software maker based in Palo Alto, Calif. TIBCO belongs to Vista Equity Partners, one of the acquiring firms.
It was not immediately clear what the merger means for employment and the degree to which there will be a continued presence of Citrix’s software development business in Fort Lauderdale.
For Citrix stockholders, the $104 a share deal means a 30% premium above last Dec. 7, when news first broke that Citrix was in play for a potential takeover, the companies said in a joint statement Monday.
Wall Street powerhouses Vista Equity Partners and Evergreen Coast Capital, the private equity arm of the giant Elliott Management Corp., are driving the deal,
“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,” said Bob Calderoni, chairman of the Citrix board of directors and interim chief executive officer and president.
Late last year, CEO David Henshall stepped down from his posts as well as from the board of directors. He had served as Citrix’s top executive since 2017. The move came after the 32-year-old technology company was reported to be considering putting itself up for sale and Elliott Management took a sizable investment stake in Citrix.
“This transaction provides our shareholders with significant immediate cash value,” Calderoni said Monday. “Moreover, this investment by Vista and Evergreen is a testament to the value Citrix has created and the reputation our team has built.”
In the joint statement, Citrix and the acquiring firms said the deal will create one of the world’s largest software providers, serving 400,000 customers, including 98% of the Fortune 500 companies, with 100 million users in 100 countries.
“We have always viewed Citrix as a true technology pioneer, building and defining so many categories that have changed the landscape of the industry,” said Monti Saroya, co-head of Vista’s Flagship Fund and it senior managing director.
“As a private company, Citrix will have access to additional resources and support, as well as more flexibility to take advantage of strong secular tailwinds with trends supporting modern and secure remote hybrid work to serve the combined customer base and invest in high-growth markets,” he said.
Citrix makes business software for the world of cloud computing, including virtually accessing desktop computers, data storage, servers, and networking.
After the advent of the COVID-19 pandemic, which triggered a sweeping trend of remote work across industries in the U.S. and abroad, Citrix stepped up efforts to help companies modernize internal communications and work places with “work-from-anywhere” digital products that are not tied to any one geography, network or set of devices.
