Citrix to merge with Tibco after $16.5B private equity acquisition

Citrix to merge with Tibco after $16.5B private equity acquisition

Tibco is already one of Vista’s portfolio companies.

Bob Calderoni (Citrix)

Bob Calderoni (Citrix)

Credit: Bob Calderoni

Citrix Systems is set to be merged with integration and analytics software maker Tibco after two private equity firms struck a deal to jointly acquire the cloud computing and virtualisation vendor for US$16.5 billion.

Affiliates of Vista Equity Partners, a global investment firm focused on enterprise software, data and technology-enabled businesses, and Evergreen Coast Capital Corporation, an affiliate of Elliott Investment Management, have entered into a definitive agreement to acquire Citrix in an all-cash transaction, including the assumption of Citrix's debt.

Vista and Evergreen intend to combine Citrix with Tibco, the latter of which is already one of Vista’s portfolio companies.

It is thought that the merger of the two companies will bring together Citrix’s secure digital workspace and application delivery suite with Tibco’s real-time intelligent data and analytics capabilities – a combination that is expected to deliver secure application and information access to accelerate customers’ digital transformation and help them navigate the hybrid workplace.

The union is expected to create one of the world’s largest software providers, serving over 400,000 customers in 100 countries.  

In addition, it is hoped the move will accelerate Citrix’s growth strategy and software-as-a-service (SaaS) transition, with the combined company set to be positioned to provide secure and optimised infrastructure for enterprise application, desktop delivery and data management.

“Over the past three decades, Citrix has established itself as the clear leader in secure hybrid work,” said Bob Calderoni, Citrix’s chair, CEO and president. “Our market-leading platform provides secure and reliable access to all of the applications and information employees need to get work done, wherever it needs to get done.  

“By combining with Tibco, we will expand this platform and the outcomes our customers achieve. Together with Tibco, we will be able to operate with greater scale and provide a larger customer base with a broader range of solutions to accelerate their digital transformations and enable them to deliver the future of hybrid work."

“As a private company, we will have increased financial and strategic flexibility to invest in high-growth opportunities, such as DaaS [desktop-as-a-service], and accelerate its ongoing cloud transition,” he added.

According to Calderoni, the acquisition and merger announcement represents the culmination of a strategic review process conducted over five months, including extensive outreach to both potential financial and strategic buyers.  

“This transaction provides our shareholders with significant immediate cash value. Moreover, this investment by Vista and Evergreen is a testament to the value Citrix has created and the reputation our team has built,” he said.  

For Monti Saroya, co-head of Vista’s Flagship Fund and senior managing director, as a private company, Citrix will have access to additional resources and support, as well as more flexibility to take advantage of strong secular tailwinds with trends supporting modern and secure remote hybrid work.

From the perspective of John Stalder, managing director at Vista, with both Citrix and Tibco having completed transitions to approximately 90 per cent recurring revenue, the combined business will be well poised to drive future growth.

“Citrix and Tibco provide mission-critical software and services to many the world’s most successful businesses, and we see tremendous value in combining their respective world-class offerings to help companies gather insight from the growing volumes of data generated by the hybrid work economy,” Stalder said.  

“We look forward to partnering with Evergreen and the Citrix and Tibco teams to ensure this is a seamless transition for all stakeholders,” he added.

Calderoni was named as Citrix's interim CEO and president in October last year, the move coming as David J. Henshall stepped down after four years at the top.

Henshall first joined Citrix as a vice president and chief financial officer in 2003, becoming president and CEO in 2017. 

Calderoni also served as interim CEO from October 2015 through January 2016. He has been on the Citrix board since 2014 and he also served as executive chairman of the board from July 2015 through December 2018. 

Following the transition, Calderoni said Citrix would "remain focused on transitioning the business to SaaS as we work to securely deliver a unified work experience for our valued customers."

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