Citrix Jumps on Elliott and PE Vista Equity Joint Offer Report
By Dhirendra Tripathi
Investing.com – Citrix Systems (NASDAQ 🙂 stock rose 8% in pre-market trading on Tuesday after a Bloomberg report said activist investor Elliott Management and Vista Equity Partners were considering a joint bid for the society.
Talks are at an early stage and Vista Equity, a private equity firm focused on technology companies, may use its holding company Tibco as part of the offer, according to the report.
Bloomberg reported in September that Citrix was working with advisers to explore a potential sale. Talks followed Elliott’s 10% stake in the company. Citrix’s market valuation is currently just over $ 10 billion.
Elliott is known to chase companies to take action to increase shareholder returns. This includes moves such as top management reshuffles, forced buyouts and demands for better capital allocation.
Citrix specializes in remote access software solutions. This specialty was in high demand during the pandemic and is expected to remain so as the work-from-home model takes hold. However, the company has in the meantime switched to a subscription model, which has capped its revenue growth in the short term.
Total third-quarter revenue of $ 778 million grew only 1% year-on-year. This follows another disappointing quarter where revenue grew 2% year-on-year.
The company’s stock price suffered, falling 37% in one year while rising about 23%.