Citrix Systems Inc. has been specializing for 28 years in cloud computing technologies as well as server, networking, and SaaS. However, continuous financial evolution impelled the company to seek a new sale process. Goldman Sachs plays an important role here, by advising the tech organization on best suitors for their cloud services.
The tech company based in Fort Lauderdale, Florida, is working with employees at Goldman Sachs Group Inc. to organize an effective yet discreet sale process. The consulting firm is looking to propose the deal to potential buyers which can also include private equity firms. The sources of this thread have been contacted by publication Bloomberg. However, they refused to have their identities disclosed as this is a private matter.
Potential Suitors Have to Deal with High Valuation
Nonetheless, this is going to be a difficult task even for Goldman Sachs. The finalists of the sales process would most probably have to split the bid between them given the large market valuation of Citrix Systems. The buyout firms are usually unwilling to team up with others, which will lead to a complicated transaction. The same sources pointed out to an increased market value of the tech company over the years. This evolution might make it difficult for buyers to offer a premium deal for Citrix.
On Monday, the shares have already increased by 6.8% to $84.93. Thus, the total value of the company rose to $13.3 billion. Moreover, during the last 12 months, the stock was boosted by around 30%. This result comes in contradiction with the claims of the management, according to which they are more after a conservative prospect for the upcoming four quarters. Neither Goldman Sachs nor Citrix Systems wanted to comment the news.
Overview of Recent History Prior to the Sale Process
In 2015, Citrix Systems included Jesse Cohn, a partner of Elliott Management, an activist hedge fund company, to its board. At the same time, the tech organization named Robert Calderoni as the executive chairman. As a result of these changes, the company underwent a series of reviews as far as strategic and operational points are concerned.
It was only last July when Citrix Systems announced the evolution of its GoTo business thanks to a merger with LogMec Inc. The deal was worth $1.8 billion which led to a collaboration with its main rivals in online meeting organization.
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