Elliott Management Corp and Vista Equity Partners are shut to shopping for Citrix Systems Inc in a deal that values the U.S. cloud computing firm at about $13 billion, in accordance to an individual acquainted with the matter.
The deal, which could possibly be introduced as quickly as early this week, got here after Elliott and Vista collectively tapped the mortgage market to fund their money bid for Citrix at $104 per share. Once taking Citrix non-public, Vista plans to merge it with Tibco, one other knowledge analytics software program agency it owns.
The money bid comes decrease than the place Citrix inventory closed at $105.55 on Friday. Still, the value represents a premium to its lows in December.
Citrix’s merchandise permit staff of corporations to entry their community remotely. However, it failed to capitalize on the rise of distant working in the course of the COVID-19 pandemic as a result of it spent an excessive amount of on its salesforce and too little on its distribution companions, Citrix interim Chief Executive Robert Calderoni mentioned on the corporate’s most up-to-date quarterly earnings name.
Citrix, Elliott and Vista didn’t instantly reply to requests for remark.
Elliott, the hedge fund that has amassed a stake in Citrix, has been in search of companions to take the corporate non-public since final October, sources mentioned.
While Citrix has struggled to transition to a subscription-primarily based enterprise, demand for its cloud providers soared in the course of the pandemic as corporations shifted to distant working fashions.
Still, the corporate reported working revenue of $84.5 million within the third quarter, down from $128.3 million a 12 months in the past, as greater operational bills weighed.
Calderoni took over on an interim foundation from David Henshall, who stepped down final month, having served as Citrix CEO since 2017. Elliott managing associate Jesse Cohn joined the Citrix board of administrators in 2015 and stepped down final 12 months.
(Reporting by Krystal Hu in New York; modifying by Diane Craft)