Under terms of the deal, Citrix shareholders will receive $104 in cash per share, implying an equity value of nearly $13 billion and confirming a Reuters report from Sunday about the joint bid.
This represents a premium of 24.3% to Citrix’s close on Dec. 20, when talks of a joint bid were first reported. However, it is at a discount of 1.5% to the stock’s last close.
Shares of Citrix were down 3.6% at $101.8 before the bell on Monday.
“Today’s announcement is the culmination of a strategic review process conducted over five months, including extensive outreach to both potential financial and strategic buyers,” interim Chief Executive Officer Bob Calderoni said in a statement.
The company, which provides remote work solutions and networking software to businesses and according to its website, counts 98% of Fortune 500 firms as its customers.
But it failed to capitalize on the rise of virtual working during the COVID-19 pandemic as it spent too much on its salesforce and too little on its distribution partners.
That led to Citrix’s shares tumbling 23% last year.
It was exploring a potential sale in September, according to a Bloomberg News report that cited people familiar with the matter.
The buyers include Evergreen Coast Capital, an affiliate of Elliott and other affiliates of Vista Equity. They intend to combine Citrix and Vista’s portfolio company TIBCO Software, a data analytics firm to cater to enterprises embracing hybrid work models.