Citrix takeover alert: Elliott Management is at it again
Elliott Management is fascinated with Citrix (NASDAQ: CTSX). The hedge fund’s actions imply that it believes that it can not only oversee the company better than its management but also guide the workplace software maker to greater value. On January 14, Bloomberg news reported that Elliott Management and hedge fund Vista Equity Partners are speaking to bankers about raising funds with which to acquire the Fort Lauderdale, Fla. based firm. Elliott presently owns approximately 10 percent of $11.9 billion Citrix.
This isn’t the first time that Elliott has acquired a significant number of Citrix shares. In 2015, the hedge fund leveraged its 7.5 percent ownership to put its head of equity activism, Jesse Cohn, on the board of directors. His urging forced the company to spin off its “Go to…” brand of products, among other things.
When Cohn left his position on Citrix’s board in April of 2020, Citrix’s share price had risen from around $50 to approximately $150 per share. Elliott sold a substantial amount of shares earning a handsome profit.
Flash forward to September 27, 2021. Elliott again acquired $CTXS shares, its ownership amounting to about $10 billion. Rumors began to circle that it was pressuring a sale. Citrix CEO David Henshall resigned and Bob Calderoni former CEO Ariba, CFO IBM and Apple) replaced him as interim CEO.
On January 2022, Citrix’s shares were trading at $95.80 but rose 5.54 percent once rumors of the sale were made public. It’s important to note that no deal has been announced thus far and talks could still end without an agreement.
