Citrix Systems experienced a sharp drop in shares price this year. It is now working with advisers to again considering getting acquired, according to people familiar with the matter. The company’s shares jumped when the possible sale of the company became public news.
Citrix plans to gauge the interest of potential acquirers over the next few weeks, the sources said, asking not to be identified since the matter is still private. A decision is yet to be made on whether the company can be sold and Citrix still holds the option to remain a standalone organization.
What the company might do
Citrix has declined to comment on the possible sale of the company. Citrix shares have fallen almost 16% this year, the company’s market cap is now 13.7 billion dollars. The shares decline included the sharpest drop since 2008, after Q2 results delivery in July that did not meet analysts ‘expectations.
The move comes after activist investor Elliot Investment Management took a 10% stake in the workplace software maker earlier this week, marking the second time Elliot has been involved with Citrix. A few years ago Citrix also become involved with Citrix.
A tumultuous history
In 2015, Elliot disclosed a stake in the company, arguing that it was suffering from poor execution and management, suggesting that it needed to simplify the business, following a misguided spending spree. As part of a settlement that year, Jesse Cohn, an Elliot partner, joined the Citrix board, where he remained until last year.
Citrix tried to sell itself in 2017. However, discussions with potential buyers hit a wall due to valuation disagreements. Some of the potential buyers at the time included Thoma Bravo and Bain Capital. Who might be interested in Citrix now, is unknown. Citrix can be an attractive target for many companies, especially if the whole hybrid work trend continues after COVID. Citrix offers secure remote workspaces.