All relevant market regulators have greenlit the merger of Citrix and TIBCO. The companies are allowed to merge into Citrix-TIBCO at the end of this month.
According to a statement from Citrix, the proposed merger complies with all relevant laws and regulations. Citrix is in the process of delisting from the US stock exchange. The merger will be a reality by the last week of September.
This announcement brings an end to the merger process that started in January of this year. Investment companies Vista Equity Partners and Evergreen Coast Capital have finally acquired Citrix for $16.5 billion (€14.74 billion at the time). As investor Vista Equity Partners already owned TIBCO, a merger seemed the obvious choice.
The deal should bring an end to years of turmoil at Citrix. Citrix struggled to determine its course in recent years. The company was pressured by activist shareholder Elliott Management, who demanded higher returns.
One of the largest software companies
The merger should create one of the world’s largest software companies. Citrix and TIBCO operate in different market segments. Citrix has a strong position in virtual desktop environments and other cloud applications while TIBCO focuses on service-based IT architectures. The two companies’ products compete in some areas.
How both companies intend to integrate their portfolios is not yet known. The strategy is unlikely to be disclosed before the merger is finalized. The new company will be headed by Tom Krause, former president of Broadcom Software.