P/E Firms Mull Citrix Takeout

Cloud computing and virtualization company Citrix Systems Inc. has had a rough year$CTXS is down 28% this year, but the stock gained 13% today on the news of a potential deal.

Vista Equity Partners and Elliott Management Corp. could take Citrix private in a buyout deal, according to reports. The deal is still in early stages, but news also surfaced earlier this week that Elliott Investments bought a 10% stake in Citrix Systems. The Florida-based computing company is presently valued at $10 billion.

In addition to falling share prices, Citrix’s former CEO and president recently stepped down due to “some missteps” following an earnings call. Citrix also pursued a sale/spinoff in 2015 and in 2017, but failed to strike a deal. Citrix’s new CEO, Bob Calderoni, shared:

We just have to reverse some of the things that we did over the last year or two and make the business more attractive. And just like a Salesforce, if you make it more attractive to sell something, you‘ll get more of it sold and it’s fixable. It might take a little bit of time before we see the uptick, but I’m pretty confident we will.

Rumor has it that Vista Equity Partners will involve its portfolio company Tibco in the Citrix deal. In 2020, Vista sold Wrike, another one of its portfolio companies, to Citrix for $2.25 billion.

Can Citrix close the deal and recover its widening losses?? Tech deals have been the theme of this week, after all (Oracle & Cerner.) 🤖

$CTXS gained 13.63%. 

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