Thursday, October 19, 2017

Citrix’s valuation rockets to $13.3bn after sale talks emerge

Goldman Sachs Group allegedly hired to find potential buyers that could also be private equity firms.

Software company Citrix’s valuation has soared to $13.3bn after reports emerged around the possibility of the company being in talks to sell its business.

Sources told Bloomberg Citrix is currently on the lookout for potential buyers, which include private equity firms.

To find such buyers, the company has turned to Goldman Sachs Group, people familiar with the matter said.

The same people said interest in buying the company has been limited due to its market valuation which would force acquirers to jointly fund a M&A bid.

Citrix’s market value rose in 2016 which is also proving to be a challenge as private equity firms are being cautious around any sort of offers made for the company, according to Blomberg’s sources.

In the 12 months to March 10, 2017, the company experienced a growth of 30%.

On Monday morning (Eastern Time), and following the first report on the potential sale, Citrix’s shares jumped 6.8% to $84.93, giving the company a valuation of $13.3bn.

The value has since gone down to $81.27 per share, putting the company’s valuation at the time of publishing at $12.73bn.

Citrix was founded in 1989 by late businessman Ed Iacobucci. In 2016, the company reported $3.42bn in revenues, 4% up from 2015’s $3.28bn.

Cash flow from operations was $1.12bn for fiscal year 2016 compared with $1.03bn for fiscal year 2015.

The company services 400,000 organisations worldwide and has more than 100 million users.