Citrix Acquisition: Key Details, Impact, and What Comes Next

The acquisition of Citrix by TIBCO, facilitated by Vista Equity Partners and Evergreen Coast Capital, marks a significant shift in the enterprise software landscape. Valued at $16.5 billion, this strategic move aims to create a global leader in digital workspace and data analytics solutions. The merger is set to enhance customer relationships and drive long-term value in the industry.

What Is Citrix?

Founded in 1989, Citrix offers a range of IT solutions including Citrix App and Desktop Virtualization, Performance Observability, and Security Analytics. The company stands out by empowering hybrid workforces, protecting sensitive business information with zero trust app access, and delivering a seamless user experience across devices. Citrix also simplifies app and desktop management for distributed workforces and focuses on sustainable IT with hybrid multi-cloud solutions, catering to various industries such as healthcare, financial services, and education.

Who Acquired Citrix?

TIBCO is a prominent provider of enterprise data platforms, specializing in real-time insights. The company offers a range of key products including the TIBCO Platform, integration tools, event processing solutions, messaging services, process management tools, and high-performance data grids. TIBCO's solutions, such as API-led integration and data streaming, cater to diverse business needs. Known for its reliable and scalable software, TIBCO significantly influences industries like healthcare, finance, and public services, driving digital transformation and operational efficiency.

When Was Citrix Acquired?

TIBCO completed the acquisition of Citrix on September 30, 2022. This acquisition occurred during a period marked by significant consolidation in the enterprise software industry, driven by the need to create scalable, growth-oriented platforms. The merger aimed to address the challenges of a rapidly evolving, data-centric world, enhancing business capabilities and driving the future of mission-critical cloud software solutions. The combined entity, Cloud Software Group, now serves a vast customer base with a focus on secure hybrid work and data analytics.

Why Was Citrix Acquired?

• Market Expansion: The merger of Citrix and TIBCO aims to create one of the world’s largest software providers, serving 400,000 customers, including 98% of the Fortune 500, with 100 million users in 100 countries. This strategic move significantly broadens their customer base and enhances their ability to offer a comprehensive range of solutions, accelerating digital transformations and enabling the future of hybrid work.
• Technology Integration: The combined company will integrate Citrix’s secure digital workspace and application delivery suite with TIBCO’s real-time intelligent data and analytics capabilities. This integration empowers customers with secure application and information access, along with the insights needed to accelerate digital transformation and navigate the hybrid workplace. Additionally, Citrix’s NetScaler and ShareFile, and TIBCO’s ibi and Jaspersoft will remain as major solution lines, offering comprehensive solutions.
• Competitive Advantage: The merger leverages the individual strengths of both Citrix and TIBCO, each established industry leaders. By focusing on mission-critical cloud software solutions and maintaining separate business units and branding, the combined company aims to retain its competitive edge. This specialization allows them to drive innovation and maintain deep, long-standing relationships with some of the world's largest enterprises, providing tailored support and enhancing customer satisfaction and loyalty.

Acquisition Terms

• Acquisition Price: $16.5 billion
• Payment Method: All-cash transaction
• Key Conditions or Agreements:
  • Citrix shareholders will receive $104.00 in cash per share.
  • The transaction represents a 30% premium over Citrix’s unaffected 5-day VWAP as of December 7, 2021, and a 24% premium over the closing price on December 20, 2021.
  • The transaction has been unanimously approved by the Citrix Board of Directors.
  • The transaction is subject to customary closing conditions, including approval by Citrix shareholders and receipt of regulatory approvals.
  • The transaction is not subject to a financing condition.
  • Upon completion, Citrix will become a private company and its shares will no longer trade on the Nasdaq.
  • Elliott and certain affiliates, holding approximately 12% interest in Citrix, have agreed to vote in favor of the transaction.
  • Citrix will continue to operate under its name and brand, headquartered in Fort Lauderdale, FL.
  • Citrix and TIBCO will remain separate business units under the new Cloud Software Group (CSG).
  • Several executive roles have been defined within CSG, including the CEO, CIO, CFO, and general managers for Citrix and TIBCO.
  • Citrix subsidiary Wrike has separated from Citrix and will operate independently with financial backing from Vista and Evergreen.

Impact on Citrix

The acquisition of Citrix by TIBCO has led to significant changes in operations and management. Citrix has been taken private and now operates under the Cloud Software Group, with Tom Krause as CEO. The company continues to function under its name and brand, headquartered in Fort Lauderdale, FL. Key executive roles have been redefined, with Sridhar Mullapudi as General Manager of Citrix and Abhilash Verma leading NetScaler. The separation of Citrix's NetScaler and ShareFile from its core Virtual Desktop Infrastructure (VDI) business marks a strategic shift, allowing focused innovation in each area.

Product offerings and services have also evolved. Citrix and TIBCO will continue to operate as separate business units, maintaining their major solution lines. This structure aims to enhance customer engagement and drive targeted innovation. The merger has been met with mixed reactions from employees, with some departures and layoffs reported. However, the strategic vision of the combined entity has been positively received by customers, who anticipate improved digital workspace and data analytics solutions. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring a smooth and efficient transition.