Citrix Systems spends $2.25bn on Wrike acquisition
Citrix Systems, Inc. (NASDAQ:CTXS) has entered into a definitive agreement to acquire SaaS collaborative work management company Wrike for $2.25 billion.
The company said the combination will bring together Citrix’s digital work platform with Wrike’s work management solution, which streamlines collaboration and work execution.
The addition of Wrike’s cloud-delivered capabilities is set to accelerate Citrix’s business model transition to the cloud and strategy to become a complete SaaS-based work platform.
“Work today is happening everywhere – at home, in the office and on the road. We believe that in the future, success will go to those companies that can support flexible and hybrid work models and provide a consistent, secure and efficient experience that removes the complexity and noise from work so employees can focus and perform at their best, wherever they happen to be,” said David Henshall, President and CEO, Citrix.
“Together, Citrix and Wrike will deliver the solutions needed to power a cloud-delivered digital workspace experience that enables teams to securely access the resources and tools they need to collaborate and get work done in the most efficient and effective way possible across any channel, device or location.”
Citrix and Wrike will jointly serve over 400,000 customers across 140 countries. Upon closing, Wrike will gain access to Citrix’s ecosystem of partners.
“When it comes to the future of work, Citrix and Wrike share a common vision and mission: to reduce the complexity and chaos of work and empower every person, team, and organisation to achieve their very best,” said Andrew Filev, Founder and CEO, Wrike.
Filev will continue to lead the Wrike team and report to Arlen Shenkman, EVP and Chief Financial Officer, Citrix.
“Together, we will unlock the workspace of the future, truly transforming the work experience and equipping people with an innovative set of solutions they can use to exceed goals and keep business moving forward.”
Wrike is expected to have approximately 30% stand-alone growth to between $180 million and $190 million in unaudited SaaS annualised recurring revenue in 2021.
Citrix will fund the transaction with a combination of new debt and existing cash and investments.
The transaction, which has been unanimously approved by the board of directors of both Citrix and Wrike, is expected to close in the first half of 2021 and both companies will continue to operate independently.
J.P. Morgan Securities LLC is serving as financial advisor to Citrix on the transaction and Shearman & Sterling LLP as legal counsel.
The financial advisor to Wrike is Goldman Sachs Group & Co. LLC, and legal counsel is Kirkland & Ellis LLP.