Investment management companies Elliot Management Corp. and Vista Partners are on the verge of purchasing cloud computing and virtualization company Citrix Systems Inc. (CTXS) for $13 billion. This was revealed by an insider source with access to information on the matter.
This deal could be announced in the course of the week, Elliot and Vista recently tapped into the credit market to secure cash to fund their cash bid for Citrix at $104 per share.
After privatization of Citrix, Vista is planning to merge it with Tibco, a data analytics software company which it owns.
During Citrix’s latest earnings call, the company’s CEO, Robert Calderoni, said their products allows stuff members of companies to access their network remotely but they failed to capitalize on the demand increase of remote working during the coronavirus pandemic because they spent too much on its sales force and too little on its distribution partners.
For quite a while Citrix has been struggling to transition to a subscription-based business the demand for its cloud services increased rapidly during the pandemic as companies shifted to remote working models.
Since October last year, Elliot which is a stake holder in Citrix, has been looking for partners to take the company private.