Cloud computing company Citrix Systems is set to go private in a $16.5 billion takeover by affiliates of Vista Equity Partners and Elliott Investment Management.

The acquisition price covers the assumption of Citrix Systems’ net debt as well.

Elliott Investment Management is participating in the takeover via its affiliate Evergreen Coast Capital. The hedge fund has a stake of nearly 12% in Citrix Systems, which is currently listed on NASDAQ.

The bid offered by Elliott Investment Management and Vista Equity Partners is $104 per share.

Founded in 1989, Citrix Systems offers desktop virtualization, networking, software as a service (SaaS), and cloud computing technologies.

Monti Saroya — Co-Head of Vista Equity Partners’ Flagship Fund and Senior Managing Director said: “We have always viewed Citrix as a true technology pioneer, building and defining so many categories that have changed the landscape of the industry.

“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 to serve the combined customer base and invest in high growth markets.”

Following the closing of the deal, the buyers plan to combine Citrix Systems with Tibco Software, which is a portfolio company of Vista Equity Partners. Tibco Software offers enterprise data management and analytics to assist its clients in connecting, unifying, and predicting business outcomes.

The post-transaction scenario will see Citrix Systems’ digital workspace and application delivery solutions combined with Tibco Software’s capabilities in real-time intelligent data and analytics.

Bob Calderoni — Chair of the Citrix Systems Board of Directors and Interim CEO and President said: “Over the past three decades, Citrix has established itself as the clear leader in secure hybrid work. 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, and accelerate its ongoing cloud transition.”

Subject to approval of Citrix Systems’ shareholders, receipt of regulatory approvals, and other customary conditions, the deal is likely to be wrapped up mid-year.

  Bob Calderoni, Citrix Systems, cloud computing, digital transformation, Elliott Investment Management, Monti Saroya, Tibco Software, USA, Vista Equity Partners