Posted Mar. 15, 2017 at 6:31 a.m.

Will Citrix find a megadeal buyer at $15B in value?

Published: 2017-03-15 06:31:41
Updated: 2017-03-15 06:31:41


Citrix, the software developer that has a major presence in Raleigh, is looking for a buyer. But can the company find someone who would pay $15 billion? Bloomberg news wonders.

Based on Friday's stock price and given a 7 percent stock boost on Monday followed by a slight decline on Tuesday, Bloomberg estimates a buyer of the Florida-based company would have to cough up some $15 billion for the firm.

Bloomberg reported Monday that Goldman Sachs Group had been brought in "to sound out potential suitors including private equity firms."

"In many ways, Citrix fits the classic mold of a private equity buyout in the technology industry," Bloomberg reported Tuesday. "The 28-year-old company isn't known for having the most cutting edge or loved software, but it is essential plumbing for many companies that want to give employees access to their digital files while they're at home or on the road, making it a steady earner. That said, a deal would be pricey and would require some financial gymnastics to get done."

If a buyer is found, Bloomberg noted, the deal would likely be the largest since Michael Dell took Dell private in 2013.

In December, Citrix announced plans to add another 400 jobs in Raleigh where its business centers around its ShareFile technology.

However, last month ShareFile founder Jesse Lipson, who sold that company to Citrix then stayed on to spearhead building of a new Citrix operation in Raleigh's warehouse district, said he was leaving. Lipson plans to launch another startup.

Read more from Bloomberg at:

https://www.bloomberg.com/gadfly/articles/2017-03-14/citrix-tests-private-equity-s-appetite-for-big-buyouts

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