Citrix buys Wrike for $2.25 billion, goals to bolster hybrid work portfolio
Citrix stated Tuesday that it has signed a deal to accumulate Wrike, makers of collaborative work administration software program, for $2.25 billion in money. Citrix additionally reported its fourth quarter and financial 2020 monetary outcomes, which beat expectations.
San Jose-based Wrike is a Vista Fairness Companions portfolio firm with roughly 1,000 workers and roughly 18,000 clients globally.
Citrix stated shopping for Wrike will bolster Workspace, its digital work platform, and speed up its enterprise mannequin transition to the cloud. Citrix is in the course of a transition to extra of a subscription-based income mannequin, and Citrix Workspace now generates the vast majority of that income.
Citrix, which is among the many bevy of tech distributors benefiting from the work-from-home wave, stated the mixture with Wrike will open “new income alternatives each inside current put in buyer bases and new traces of enterprise shopping for facilities, together with advertising and marketing, skilled providers, and HR.” The businesses will serve a mixed 400,000 clients throughout 140 nations, Citrix stated.
In ready remarks, Citrix CEO David Henshall stated “success will go to these firms that may assist versatile and hybrid work fashions and supply a constant, safe and environment friendly expertise”.
“Collectively, Citrix and Wrike will ship the options wanted to energy a cloud-delivered digital workspace expertise that allows groups to securely entry the assets and instruments they should collaborate and get work accomplished in probably the most environment friendly and efficient manner doable throughout any channel, machine or location,” Henshall stated.
As for earnings, Citrix reported This fall non-GAAP earnings of $1.46 per share on income of $810 million. Wall Avenue was anticipating This fall earnings of $1.33 per share and income of $781 million.
Elsewhere on the stability sheet, Citrix stated This fall subscription ARR was $1.2 billion, up 62% yr over yr. In the meantime, the corporate stated SaaS ARR got here to $725 million, up 39% from a yr in the past. Workspace income in This fall was $591 million, roughly 73% of the quarter’s income.
Ctirix stated Wrike is anticipated to have roughly 30% stand-alone progress to between $180 million and $190 million in unaudited SaaS ARR in 2021, with the chance to speed up progress over time as a part of Citrix.
For the primary quarter of 2021, Citrix is projecting income of $785 million to $795 million with non-GAAP earnings of $1.40 a share to $1.45 a share. That steerage is generally consistent with Wall Avenue estimates.