Citrix is acquiring Work management software firm Wrike. The acquisition will give Citrix a competitive advantage in cloud computing by enabling employees to collaborate wherever they are, regardless of their physical location. The combined product will support over 400,000 users in 140 countries.
Citrix partners
Citrix has acquired Wrike from Vista Equity Partners in a deal that will add more than $2 billion to its annual revenue. The software-as-a-service company enables teams to plan, track deadlines and monitor workflow. The combined company will have more than 400,000 customers. Citrix will use the deal to expand its collaboration solutions for businesses.
This acquisition is an important step for the company in its pursuit of a recurring revenue model. With the combined product suite, companies will be able to bring employees from different locations together and streamline processes. This deal will help the company’s customers make the most of the cloud while providing an improved user experience for employees.
Wrike’s ARR is currently at $140 million and growing at 30% a year. As a result, its sale price is 16x current revenues. The company expects to achieve $180 million in ARR this year, and this valuation may look like a bargain in a few years.
Work management software firm Wrike
Citrix is an enterprise software provider and is a partner of Wrike, a SaaS platform that helps companies automate their work processes and collaborate. Both companies believe in simplifying the modern workplace and helping people achieve their goals. Combined, the two companies serve over 400,000 users in 140 countries.
Wrike has over 1,000 employees and 18,000 customers. The company helps teams plan and complete work remotely. Its acquisition by Citrix will boost the company’s annual revenue by $1 billion. Its CEO, Andrew Filev, will continue to run the company and report to Citrix’s CFO, Arlen Shenkman. The companies will fund the transaction through existing cash and new debt.
Citrix is pursuing Wrike in order to expand its portfolio and tap a larger market. While analysts are divided on the acquisition, it is clear that the company needs to expand its business, as Wrike’s market is highly competitive. However, some worry that this acquisition could dilute Citrix’s free cash flow and margins. However, Citrix is confident that the deal will close within the first half of next year.
Acquisition of Wrike
The acquisition of Wrike by Citrix Partners will allow Citrix to offer its cloud-based collaborative work management tools to customers. Citrix and Wrike each have more than 400,000 users, and the combination of both companies will enable Citrix to serve customers around the world. The two companies are also expected to create new revenue streams.
Citrix and Wrike’s boards of directors unanimously approved the transaction, and the transaction is expected to close during the first half of 2021. Regulatory approvals and customary closing conditions will be required. Once completed, Filev will continue to lead the Wrike team and report to Citrix’s EVP and Chief Financial Officer, Arlen Shenkman. The two companies have already secured a $1.45 billion senior secured bridge loan commitment from JPMorgan Chase Bank NA. The companies expect to close the deal in the first half of 2021.
The company is headquartered in San Jose and has more than a thousand employees. Wrike claims to have 20,000 customers in over 150 countries. Wrike is a project management platform that offers tools to structure, track, and report projects. Its users can collaborate on any device.
Synergies with core Workspace product
Citrix has extended its relationship with Google, bringing its Workspace suite of products to Google Cloud Platform customers. The integration is intended to facilitate customers’ migration to the cloud. The Workspace suite will integrate with GCP-based authentication tools and Google Calendar. It will also offer a unified user experience and support for mobile devices.
Citrix, which has long been synonymous with remote desktop access, has changed its services to fit the modern workplace. The company recently announced the launch of its Citrix Workspace Service at the Synergy conference. It also made two of its products available in Microsoft’s Azure marketplace: XenApp and XenDesktop Essentials. Citrix’s products provide desktop and application virtualization.
The company will showcase the capabilities of its Workspace ONE platform, including its Horizon virtualized desktop and application delivery platform. The platform also includes the Identity Manager technology.
