Citrix Systems Inc. said Tuesday that it plans to spin off its GoTo family of products into a separate, publicly traded company. The transaction, which is intended to be a tax-free spinoff to Citrix shareholders, is expected to be completed in the second half of 2016.
According to Citrix, the move will allow Citrix and the new company to focus on their respective competitive positions, while permitting Citrix to improve operational efficiency. There was no word on how the spinoff will affect Citrix’s Raleigh operations.
Immediately following the separation, Citrix shareholders will own shares in two publicly traded companies:
- The company established as a result of the spinoff will be made up of GoToAssist, GoToMeeting, GoToMyPC, GoToTraining, GoToWebinar, Grasshopper and OpenVoice. This company will more effectively allocate resources in line with its own market opportunity, unique growth priorities and go-to-market capabilities, as well as adapt more quickly to SaaS market and customer dynamics; and,
- Citrix, which will focus on its strategic solutions for secure and reliable delivery of applications and data.
According to the company’s financial statements, the products and services to be spun off accounted for about $600 million in revenue for the 12 months ending on Sept. 30.
“It is clear to us that the GoTo family of products is best suited to grow and operate as a standalone business,” Bob Calderoni, interim chief executive and president and executive chairman of Citrix, said in a statement. “This separation will create a leading, pure-play … company that will have a targeted focus with the flexibility to invest in its portfolio of products. It will also allow Citrix to refocus and amplify investment in our core mission to enable secure and reliable delivery of apps and data for the modern enterprise.”
Chris Hylen, senior vice president and general manager of the Citrix Mobility Apps Business Unit, will serve as CEO of the new company.
“I am excited to launch our GoTo businesses as a new company strategically positioned for sustained, profitable growth,” Hylen said in a statement. “We are building on a strong base of offerings and look forward to creating even more value for our employees, customers and shareholders. I am confident that the GoTo family of products will excel as a standalone business.”