- Transaction unites leading
workspace delivery platform with best-in-class SaaS Work Management Solution,
ushering in new era of employee productivity
- Combination accelerates Citrix’s
business model transformation strategy and enhances overall future growth
expectations
- Company to host conference call and
webcast to provide transaction details and discuss fourth quarter and
fiscal year 2020 financial results at 8:15 a.m. ET today
Citrix Systems, Inc. (NASDAQ:CTXS),
today announced that it has entered into a definitive agreement to acquire Wrike, a rapidly growing, recognized leader
in the SaaS collaborative work management space, for $2.25 billion in cash.
Citrix today also reported earnings for the fourth quarter and fiscal year
ended December 31, 2020 and has posted additional materials, including an
earnings letter and investor presentation, on its Investor Relations website at http://www.citrix.com/
The combination will bring together
Citrix’s powerful digital work platform, which securely
delivers the resources an employee needs to be productive in one unified
experience, and Wrike’s innovative work management solution, which streamlines
collaboration and work execution, providing employees with additional tools to
work efficiently and securely wherever they may be. The addition of Wrike’s
cloud- delivered capabilities will accelerate Citrix’s business model transition
to the cloud and strategy to become a complete SaaS-based work platform
addressing the needs of various functional groups within the enterprise.
The combined company will offer
customers an enhanced value proposition through complementary solutions,
unlocking new revenue opportunities both within existing installed customer
bases and new lines of business buying centers, including marketing, professional
services, and HR. Together, Citrix and Wrike will serve over 400,000 customers
across 140 countries. In addition, upon closing, Wrike will gain access to
Citrix’s robust ecosystem of partners, creating new
opportunities within the ecosystem to drive additional value for customers.
Headquartered in
Delivering the Future of Work
“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.”
Expanding the Digital Workspace
Citrix provides a market-leading digital
work platform from which companies can deliver unified, secure and reliable
access to the systems, information and tools people need to get work done
wherever they may be working. With the addition of Wrike’s offerings, Citrix
will expand its platform to include new, collaborative work management
capabilities that enable companies to simplify work execution and boost
employee effectiveness and productivity by automating and streamlining team
collaboration as well as unifying workflows across all employees and work
styles.
“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 organization to achieve
their very best. 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,” said
Andrew Filev, Founder and CEO, Wrike.
Financial
Details
Wrike ended calendar year
2020 with more than $140 million in unaudited SaaS ARR, reflecting more than 30
percent CAGR in SaaS ARR over the prior two years. The company is expected to
have approximately 30 percent stand-alone growth to between $180 million and
$190 million in SaaS ARR1 in 2021, with the opportunity to
accelerate growth over time under Citrix’s ownership. The addition of Wrike is
highly complementary to Citrix’s existing customer base and is expected to
accelerate Citrix’s SaaS ARR growth.
Financing and purchase accounting impacts to deferred revenue will affect 2021 non-GAAP earnings per share. Integration and other costs related to the acquisition are expected to be modestly dilutive to non- GAAP earnings per share in 2021. The transaction is expected to be neutral to Citrix’s fiscal year 2022 non-GAAP earnings per share and free cash flow, and accretive thereafter.
Citrix expects to fund the transaction with a combination of new debt and existing cash and investments. Citrix is committed to its investment grade credit ratings and plans to return to historical leverage levels within 24 months. Citrix has obtained a commitment from JPMorgan Chase Bank, N.A. for a $1.45 billion senior unsecured 364-day bridge loan facility.
1 ARR does not reflect adjustments to revenue or future committed revenue that may arise in accounting for a business combination, and is not intended to be a forecast of future revenue.
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, subject to regulatory approvals
and other customary closing conditions. Until close, the companies will
continue to operate independently. Upon closing, Filev will continue to lead
the Wrike team and report to Arlen Shenkman, EVP and Chief Financial Officer,
Citrix.