Citrix Systems looks for a buyer
Citrix Systems is looking for a buyer, possibly with the help of Goldman Sachs. At least, that’s what Bloomberg says, based on the testimony from an anonymous source. The cloud-services company has hired Goldman Sachs – as well, possibly, as other advisors – to “sound out buyers, including private equity firms” according to “people” who “asked not to be identified because the information isn’t public”.
Citrix is up 16%, year-to-date
SOURCE: Yahoo Finance
Citrix has been on somewhat of a roll recently. In the last two and a half months, the company is up almost 16% - extend that to 12 months, and its up 30%. On the back of this news, the company’s share price rose by 6.8% for a new market cap of about $13.3 billion.
This is great news for investors, but it might make finding a buyer that can pay a premium more difficult. It’s also running counter to Citrix’s own guidance, which is to maintain a “conservative outlook” for the next four quarters.
Unsurprisingly, neither Citrix Systems nor Goldman Sachs responded to Bloomberg’s request for a comment.
Citrix is currently expanding its reach into cloud-related products, putting it at the forefront of the computing world. As tech giants like Google and Amazon develop massive cloud segments, Citrix is increasingly positioning itself as a third party operative, helping companies deliver applications and Windows desktop to mobile workers. For the fourth quarter, it beat estimates by delivering revenues of $908.4 million.
Dominion holds Citrix Systems in its Global Trends Managed Fund.
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