Citrix systems Inc.
CTXS -3.83%
All of the $ 16.5 billion worth of cash acquisitions, including credit, will be taken privately, making the cloud-computing company the latest subject of a major foreign exchange acquisition. Contracts increased last year.
Citrix shareholders will receive $ 104 per share from two buyers: Vista Equity Partners and Evergreen Ghost Capital Corp., a private-equity division of Elliott Management Corporation that provide citrix services to users who provide remote access to their computers and other gigs.
Shares of Citrix closed at $ 105.55 on Friday, following a rise in the company’s share price following speculation about an acquisition in recent weeks. At the start of trading on Monday, the stock was down 3.7% at $ 101.68. The Wall Street Journal Reported Sunday That the deal is nearing completion.
Vista and Evergreen plan to integrate Citrix with Dipco Software, a Vista portfolio company that provides data management software for businesses. The companies said Monday that the move will create business with 400,000 customers and 100 million users in 100 countries. Citrix will have its name and its headquarters in Ft. Lauderdale, Fla.
A deal taken by Citrix Pvt. Ltd. has been one of the largest forex acquisitions in recent months. An exciting activity last year. In 2021, private-stock companies announced $ 900 billion worth of deals in the United States, including acquisitions and exits.
Software companies such as Citrix are particularly targeted at private-equity companies because they can carry significant amounts of debt.
Citrix works by switching to a subscription-based model for its core virtual-desktop services. Converting customers to subscribers instead of licensees provides a more consistent return, which investors want and expect from software companies.
David Henshall stepped down as Citrix’s chairman and chief executive in October after scrutinizing the company’s sales following pressure from investors. He stepped down as a director with another board member, reducing the size of the board to eight. The company has slapped President Bob Calderoni as interim CEO.
Vista executive Monty Saroya says that as a private company, Citrix will have more flexibility to invest in higher growth markets.
In the last three months of 2021, Citrix recorded revenue of $ 850.8 million, an increase of 5.1% year-on-year. Its earnings were $ 102.9 million or 81 cents a share, down 12 months from $ 112.1 million or 89 cents a share.
– Cara Lombardo and Miriam Godfrey contributed to this article.
Write to Matt Grossman at [email protected]
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