According to sources familiar with the matter at hand, Elliott Management Corp and Vista Equity Partners are close to acquiring Citrix Systems Inc in a deal that values the Citrix at around $13 billion.
The deal could be officially announced as early as this week.
The development comes in the wake of Elliott and Vista jointly tapping the loan market to fund their cash bid for Citrix at $104 per share. After Vista aims to take Citrix private and merge it with Tibco, a data analytics software firm it owns.
Incidentally, Elliott and Vista bid is lower than Citrix’s closing stock price of $105.55 on Friday. The bid price represents a premium to its lows in December 2021.
Citrix’s products allow employees of companies to access their network remotely. However, it failed to capitalize on the rise of remote working during the COVID-19 pandemic since it allocated its resources on its salesforce and too little on its distribution partners, said Citrix interim Chief Executive Robert Calderoni during the company’s recent quarterly earnings call.
Neither Elliott, Citrix, or Vista immediately responded to requests for comments.
Since October 2021 Elliott, which has increased its stake in Citrix, has been looking for partners to take the company private, said sources.
Citrix has struggled to transition to a subscription-based business, demand for its cloud services soared during the pandemic as companies shifted to remote working models.
I its third quarter, Citrix reported an operating income of $84.5 million, down from $128.3 million a year ago, with higher operational expenses weighing on the company.