(Bloomberg) — Elliott Investment Management and Vista Equity Partners are nearing an agreement to acquire software-maker Citrix Systems Inc. for around $13 billion, people familiar with the matter said.
The investment firms are close to a deal to buy Citrix for about $104 per share, according to the people, who asked not to be identified because the information is private. The transaction could be announced as soon as Monday, the people said.
Shares of Fort Lauderdale, Florida-based Citrix were down about 3.5% during premarket trading in New York on Monday. The stock closed at $105.55 on Friday, giving the company a market value of about $13.2 billion.
Citrix makes software that workers use to log onto to their corporate programs virtually, a category of product extensively relied upon during the pandemic as businesses sought quick ways to keep remote workforces connected to central operations. Many are now planning permanent hybrid setups for home and office working, which is expected to grow the market for tools that help make this seamless.
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An agreement with Citrix would cap the biggest-ever month for software deals and follow a rampant year in which private equity firms and strategic buyers chased targets. The value of transactions in the sector hit a record $674 billion in 2021, almost double the previous annual high, data compiled by Bloomberg show. Values are up 144% this year, driven by Microsoft Corp.’s mammoth $69 billion takeover of video game publisher Activision Blizzard Inc., the data show.
No final decision has been made and the timing and price of a deal could still change, the people said. Representatives for Elliott, Vista and Citrix weren’t immediately available for comment outside regular business hours.
Citrix previously tried to sell itself in 2017 only to see discussions with potential buyers, including Bain Capital and Thoma Bravo, stall over valuation, people familiar with the matter said at the time.
Bloomberg News first reported in December that Elliott and Vista were considering a joint bid for Citrix, which has been exploring a sale. The stock had closed at $83.65 the day before that report. Citrix’s sale considerations came as Elliott took a 10% stake in the company, its second time investing in the workplace software maker.
Lenders put together a financing package that could lead to around $14 billion of bonds and loans to fund a potential buyout, Bloomberg News has reported.
(Updates with shares in third paragraph.)
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