After the deal is closed, Citrix Systems will be combined with Tibco Software, a portfolio company of Vista Equity Partners
Citrix Systems, an American cloud computing and virtualisation technology company, has agreed to be acquired by affiliates of Vista Equity Partners and Elliott Investment Management in an all-cash deal worth $16.5bn.
The consideration includes the assumption of Citrix Systems’ debt.
Elliott Investment Management will take part in the transaction through its affiliate Evergreen Coast Capital.
The hedge fund, which already holds a stake of around 12% in Citrix Systems, will offer $104 per share alongside Vista Equity Partners for the takeover of the publicly-listed tech firm.
Elliott Investment Management managing partner Jesse Cohn and the company’s senior portfolio manager Jason Genrich said: “We have long appreciated the mission-critical role that Citrix plays in keeping workforces connected.
“Having first invested in Citrix more than six years ago, we have a deep understanding of its unique strengths and significant potential as a private company. We look forward to partnering with Vista and working closely with Citrix’s management team and its talented employees to expand its capabilities and help drive its next phase of growth.”
As reported earlier, Vista Equity Partners and Elliott Investment Management plan to combine Citrix Systems and Tibco Software after the closing of the deal. A portfolio company of Vista Equity Partners, Tibco Software is engaged in enterprise data management and analytics to help its clients connect, unify, and predict business outcomes.
The combination of the two firms brings together Citrix Systems’ secure digital workspace and application delivery suite and the real-time intelligent data and analytics capabilities of Tibco Software. This is expected to empower clients and their users with the secure application and information access and insights required for fast-tracking digital transformation and steering through the hybrid workplace.
Through its platform, Citrix Systems is said to provide secure and reliable access to all of the applications and information needed by employees to get work done, wherever it has to be executed.
Citrix Systems board of directors chair and interim CEO and president Bob Calderoni said: “By combining with TIBCO, we will expand this platform and the outcomes our customers achieve.
“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 deal, which is subject to Citrix Systems’ shareholders’ approval, regulatory approvals, and other customary conditions, is expected to close mid-year.