Recently, a company called Citrix announced that it was acquiring Wrike from private equity firm Vista Equity Partners for $2.25B. Vista had bought the project management SaaS platform earlier in 2019 and saw Wrike as a strong addition to its existing business. What’s next? Citrix has its hands full with Aveva and Scalextreme, but Wrike seems like an excellent fit. Sources citrix partners wrike 2b pe.
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Citrix
While the deal will dilute the company’s non-GAAP earnings per share in 2021, Citrix’s growth prospects are not hampered. The deal will be funded by debt and cash, including a $1.45 billion debt facility from JPMorgan Chase Bank. Citrix expects the acquisition to close in the first half of 2021. Wrike has grown rapidly over the last several years. Last year, it had $140 million in unaudited SaaS ARR. It is expected to grow by 30% this year, with the potential to accelerate growth under Citrix ownership.
The acquisition is a major step for Citrix in its pursuit of a recurring revenue model. While the acquisition has many negatives, it is also a huge opportunity for companies to embrace the cloud and virtual workspace. With the acquisition, Citrix will expand its business by enabling employees to collaborate from anywhere. It will also allow companies to streamline their collaboration processes. With the combined products, both companies will serve more than 400,000 users across 140 countries. Sources citrix partners wrike 2b pe.
Aveva
In the announcement that the two companies are merging, Citrix is confirming the acquisition of Wrike from Vista Equity Partners. The deal was announced earlier this month. Wrike, founded in 2006, has been growing rapidly with revenues exceeding $140 million per year. It was bootstrapped for the first couple years and later raised $26 million in venture funding. The company has continued to grow after its acquisition by Vista and ended 2020 with $140 million in annual run rate. Analysts estimate the company will be worth $190 million in 2021, a 30% increase over 2020.
Wrike is a project management platform sold through the software-as-a-service model. It enables teams to manage projects, track deadlines, and monitor workflow. The company claims to have notable customers, including Microsoft, Google, and Yahoo! Vista Equity Partners. Citrix expects the acquisition to drive stand-alone revenue growth of between 30 percent this year. Sources citrix partners wrike 2b pe.
Scalextreme
In January, Citrix acquired Framehawk, a company that specialized in technology to improve the delivery of virtual desktops over cellular and wireless networks. In May, it acquired Scalextreme, a cloud computing company that offers services for XenApp and XenDesktop. Citrix is organized into three main segments: Workspace Services, Delivery Network, and Mobility Apps. It licenses these services directly to its clients and to value-added resellers.
Wrike
In a deal valued at $2.25 billion, Citrix has acquired Wrike, a digital workspace management software provider. It will become part of Citrix’s portfolio of cloud-based collaboration platforms, which help companies collaborate anywhere, anytime. Wrike is used by companies including Walmart, Choote, Fitbit, Siemens Smart Infrastructure, and Chootum Foods.
While this acquisition will dilute non-GAAP earnings for 2020 and 2021, the overall financial impact of the deal is expected to be very low. The company plans to fund the deal with a combination of cash and debt, including a $1.45B commitment from JPMorgan Chase Bank. Citrix expects to close the transaction by the first half of next year. Wrike ended calendar year 2020 with $140M in unaudited SaaS ARR. It expects to grow by 30% as a stand-alone company and accelerate growth under Citrix ownership.
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Earlier this year, Vista Equity Partners purchased a majority stake in Wrike for $800 million. The firm later sold the company to Citrix for $2.25 billion, a deal that will dilution non-GAAP earnings in 2021. Citrix and Wrike have signed a definitive agreement to acquire the company, and the deal is expected to close in the first half of 2021. Sources citrix partners wrike 2b pe.
The acquisition will help Citrix offer its customers cloud-based collaboration tools for business teams. Citrix customers include SAP, HP, Deloitte, and Hewlett-Packard. The combined company will have more than 400,000 clients. The acquisition is a strategic move for both companies, as Wrike is known for its collaboration capabilities. Wrike’s founder and CEO, Andrew Filev, remains CEO.
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