Cloud computing and virtualization company Citrix to be acquired for $16.5 billion

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Citrixa cloud computing and virtualization company used by companies like Microsoft, Google and SAP, has revealed plans are acquired by subsidiaries of global investment firm Vista Equity Partners, and a subsidiary of Elliott Investment Management called Evergreen Coast Capital Corporation.

The cash deal is valued at $16.5 billion, representing a nearly 30 percent premium to Citrix’s market cap before rumors of a potential deal surfaced. last month.

Founded in 1989, Citrix was originally known for its Windows-based remote access products, but over the decades the company has strived to keep up with the times and now offers numerous technologies for cloud computing, servers, networking, and more. One of the flagship products is: Citrix Workspacea virtualization platform that helps businesses deploy apps and desktops remotely, including securing all devices that connect to a network.

Simply put, Citrix Workspace is well positioned to thrive in a world that has had to rapidly embrace remote and hybrid work.

“Over the past three decades, Citrix has established itself as the clear leader in secure hybrid work,” Citrix interim CEO and president Bob Calderoni said in a statement.

Remote workspace

Workspace has been a core focus for Citrix as it evolves into an increasingly cloud-first world. Last year, Citrix donated more than $2 billion for project management platform Wrike, meaning Citrix was now able to provide cloud-based collaborative work management to its thousands of enterprise customers. It was about making Workspace a more tacky proposition, and it’s what led Vista and Evergreen to the door with buckets of cash in hand.

Indeed, Vista and Evergreen have indicated that they plan to combine Citrix with Tibco Software, a business intelligence and enterprise data management company that Vista has acquired. back in 2014to create what they call a “global leader in digital workspace and data analytics.”

“Together with Tibco, we can operate at a larger scale and provide a larger customer base with a wider range of solutions to accelerate their digital transformations and enable them to realize the future of hybrid work,” said Calderoni.

But perhaps more importantly than that, Citrix will no longer be a publicly traded company, that it could afford more flexibility as it recalibrates the future of work.

“As a private company, we have more financial and strategic flexibility to invest in high-growth opportunities, such as DaaS (desktop-as-service), and accelerate the ongoing cloud transition,” added Calderoni.

The deal is expected to close in mid-2022, should it gain shareholder and regulatory approval.

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