Citrix agrees to $16.5bn private equity buyout

Vista Equity Partners and Elliott Investment Management will combine Citrix with TIBCO to create ‘one of the world’s largest software providers’

Citrix has been acquired by Vista Equity Partners and Elliott Investment Management affiliate Evergreen Coast Capital for a sum of $16.5bn, the company has announced.

It confirms long-running speculation that the provider of workplace and collaboration solutions was to go private having seen its share price tumble during 2021.

Reports re-emerged in September last year that it was considering a sale after a difficult 2021 which saw CEO David Henshall step down in October after four years.

Under the terms of the agreement, Citrix shareholders will receive $104 in cash per share which represents a premium of 30 per cent over the company's unaffected five-day volume-weighted average price as of 7 December - which Citrix claims is the last trading day before market speculation of a potential transaction.

Vista and Elliott then intend to combine Citrix and TIBCO Software, one of Vista's portfolio companies which specialises in enterprise data management.

"Today's announcement is the culmination of a strategic review process conducted over five months, including extensive outreach to both potential financial and strategic buyers," said Bob Calderoni, chair of the Citrix board of directors and interim CEO and president.

"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 union of the two companies will create one of the world's largest software providers, serving 400,000 customers, including 98 percent of the Fortune 500, with 100 million users in 100 countries, Citrix added.

Vista has been looking for companies to combine with TIBCO, having planned to merge it with British robotics software firm Blue Prism before losing out in a bidding war to SS&C Technologies.

"We have always viewed Citrix as a true technology pioneer, building and defining so many categories that have changed the landscape of the industry," said Monti Saroya, co-head of Vista's Flagship Fund and senior managing director.

"As a private company, Citrix will have access to additional resources and support, as well as more flexibility to take advantage of strong secular tailwinds with trends supporting modern and secure remote hybrid work to serve the combined customer base and invest in high growth markets."

The transaction has been unanimously approved by the members of the Citrix board and is expected to close in the middle of this year. It will also include the assumption of Citrix's debt.