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Photographer: Jason Alden / Bloomberg
Photographer: Jason Alden / Bloomberg
Citrix Systems Inc. is in advanced talks to purchase the job management platform company Wrike Inc. for more than $ 2 billion, according to people familiar with the matter.
A deal for Wrike, owned by tech-driven buyout company Vista Equity Partners could be reached as early as this week, the people said, asking not to be identified because the information was private. It would be the biggest acquisition to date for Citrix.
The deal is not finalized and the talks could still collapse.
Representatives for Citrix and Wrike did not respond to requests for comment. A Vista representative declined to comment.
A deal worth over $ 2 billion would likely deliver a substantial return on Vista’s investment. It would also be the biggest acquisition to date for Citrix, according to data compiled by Bloomberg.
View acquired a controlling stake in San Jose, Calif., based Wrike in 2018. The deal valued the company at $ 800 million, the Wall Street Journal reported at the time.
Citrix already sells cloud and work-from-home products, but the acquisition will bring it into the realm of collaboration software, which helps teams work better together and get things done.
Collaboration at work software such as Wrike’s have grown in popularity, with companies increasingly relying on remote working since the start of the coronavirus pandemic. Wrike’s competitors include Asana Inc., Atlassian Inc.’s Trello Inc. and Slack Technologies Inc., which agreed to be acquired by Salesforce.com Inc. Wrike was founded by Andrew Filev in 2006 and is also backed by Bain Capital Ventures and Scale Venture Partners.
Shares of Fort Lauderdale, Florida-based Citrix have gained 15% over the past year, giving the company a market value of around $ 16 billion.
Citrix had already been the subject of a Elliott Management Corp., which first disclosed its stake in Citrix in 2015. The investor, who has since left, has supported when the company suffered from execution and mismanagement problems and had to simplify its operations after an ill-advised buying spree. Since then, Citrix has separated its GoTo meetings business, replaced two CEOs, revived revenue growth and increased margins.
The investment in Wrike was made from Vista’s Foundation Fund III, which focuses on mid-market software, data and technology companies. The fund has deployed $ 2.3 billion of the $ 2.75 billion it has raised, according to data compiled by Bloomberg.
– With the help of Katie Roof
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