BY Richard Summerfield
Citrix Systems has announced that it has entered into a definitive agreement to acquire Slack competitor Wrike for $2.25bn in cash.
The deal, which has been unanimously approved by the board of directors of both companies, is expected to close in the first half of 2021, subject to regulatory approvals and other customary closing conditions. The combined company will have 400,000 customers across 140 countries.
Citrix plans to fund the transaction with a combination of new debt and existing cash and investments. The company has obtained a commitment from JPMorgan Chase Bank for a $1.45bn senior unsecured 364-day bridge loan facility.
Citrix said it expects Wrike to generate approximately 30 percent standalone growth in 2021 to between $180m and $190m in annual recurring revenue.
“Work today is happening everywhere – at home, in the office and on the road,” said David Henshall, president and chief executive of Citrix. “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.
He continued: “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.”
“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 organisation to achieve their very best,” said Andrew Filev, founder and chief executive of Wrike. “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.”