Citrix Systems to be taken private in a $13 billion deal with Elliott and Vista Equity

Citrix Systems has agreed to be taken private in a $13 billion deal with Elliott and Vista Equity, according to multiple media reports including Reuters. As part of the deal, the cloud computing giant will be acquired by Vista Equity Partners and an affiliate of Elliott Management for $104 per share. The deal will also bolster Elliott and Vista Equity’s ambitions to tap the pandemic-driven boom in cloud computing.

As part of the acquisition agreement, Citrix shareholders will receive $104 in cash per share, implying an equity value of nearly $13 billion and confirming a Reuters report from Sunday about the joint bid.

“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,” interim Chief Executive Officer Bob Calderoni said in a statement.

Founded in 1989 by Ed Iacobucci, the founded in Richardson, Texas-based provides server, application, and desktop virtualization, networking, software as a service (SaaS), and cloud computing technologies. Citrix’s products allow employees of companies to access their network remotely.

However, it failed to capitalize on the rise of remote working during the COVID-19 pandemic because it spent too much on its salesforce and too little on its distribution partners, Citrix interim Chief Executive Robert Calderoni said on the company’s most recent quarterly earnings call. The company claimed that its products are in use by over 400,000 clients worldwide, including 99% of the Fortune 100, and 98% of the Fortune 500.

Elliott, the hedge fund that has amassed a stake in Citrix, has been looking for partners to take the company private since last October, sources said.

While Citrix has struggled to transition to a subscription-based business, demand for its cloud services soared during the pandemic as companies shifted to remote working models. Nonetheless, the company reported operating income of $84.5 million in the third quarter, down from $128.3 million a year ago, as higher operational expenses weighed.