Elliot and Vista Edge Closer to Complete Acquisition of Citrix Systems
Key Takeaways:
- Citrix Systems is on course to complete a $13 billion deal with Elliot and Vista to go private
- Initial reports suggest that Elliot Management Corp and Visa Equity Partners have reached an agreement to pay $104 per share for Citrix Systems
- The deal could be announced as early as Monday provided talks between all the parties do not break down.
Citrix, a leading cloud-computing software firm is close to a $13 Bn deal to go private. This will be one of the largest leveraged in several months following a notable slump for pubic tech stocks.
As per the latest updates, Citrix is very close to reaching an agreement with Elliot and Vista Equity for around $104 per share. So far, Elliot and Vista have not issued an official statement or commented on the story.
If things go according to plan, this deal could be announced on Monday.
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Elliot and Vista deal expected to be one of the biggest tech buyouts on record
If this deal goes through, it is likely to be one of the biggest tech buyouts on record. Besides, it will also become the first buyout of 2022 that is worth more than $10 Bn.
Elliot’s private equity division, Evergreen Coast Capital has also participated in some of the largest deals in the previous years. For instance, it completed the acquisition of Athenahealth for around $17 billion in sales along with Veritas Capital.
Over the past few months, Vista, which has $86 Bn in assets has been one of the most active investors, especially in the software space. The company which is led by Robert Smith has already officially announced around nine deals in 2022.
More about Citrix’s recent business dealings
Citrix is one of the leading developers of software that enables employees to work remotely from their devices. The remote working industry has boomed significantly over the past couple of years due to the advent of the pandemic.
However, Citrix did not make notable progress in this area. A few years before the pandemic, Citrix sold service business GoTo to LogMeIn. LogMeIn was taken over by buyout firm Franciso Partners and Elliot’s Evergreen Coast arm for around $4.3 Bn in August 2020.
The recent deal comes during an uncertain period for publicly traded companies in the tech space.
According to the BVP Nasdaq Emerging Cloud index, share prices of cloud software firms have dropped by one-third over the past three months
In December, Bloomberg was the first to report that Vista and Elliot are considering a joint bid for Citrix. Since then, company shares have increased by one-quarter and ended trading at around $105.55 on Friday.
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Feature Image Source: https://www.flickr.com/photos/citrixsynergy/with/47953426803/ used under the license Attribution-NoDerivs 2.0 Generic (CC BY-ND 2.0)
