Citrix wants a buyer, fast
'All of me, why not take all of me?' sings virty vendor
Citrix, under siege by activist fundster Elliott Management, is looking for a buyer.
Faced with the choice of carving off its flesh pound-by-pound at Elliott's behest, the US$11.6 billion company would rather find a new owner for the whole kit-and-caboodle, a Reuters report says.
The usual “people familiar with the matter” reckon Dell is among the companies Citrix has approached.
Hedge fund Elliot Management upped its stake in the company in June and immediately outlined its view of the world, claiming Citrix is undervalued and has underperformed.
A month later, CEO Mark Templeton revealed he will retire as soon as a successor is found. At the same time, Elliott senior portfolio manager Jesse Cohn grabbed himself a seat on the board.
Elliot also complained Citrix's cost structure is inefficient, the channel strategy was weak, the portfolio too broad and both the GoTo and Web app delivery accelerator NetScaler lines are “distinct” from the core products.
Since then, the company has floated the idea of selling its GoTo business, but the sources claimed that's on hold because the virty vendor hopes for a better valuation if it finds a buyer for the entire outfit.
Only last week, Citrix hired a new global channel veep Kimberly Martin to take charge of ISVs, OEMs, SIs, service providers, resellers & disties.®