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Citrix System (NASDAQ:CTXS), agreed to sell to PE companies for $16.5 billion at the end of January, down 2.3% between Zendesk’s (NYSE:MEDITATION LEARNING) agreement to sell itself to a PE Group at a price Almost half on what it fell in February.
Investors are concerned about Citrix’s (CTXS) slated to sell to Elliott Management/Vista Equity and other leveraged acquisitions including Sailpoint Technologies (NYSE:PADDLE) sold to Thoma Bravo after Zendesk agreed to a deal for $77.50 after the software company initially rejected a bid for company at $127 to $132 per share in February.
The discount also follows an Anaplan sale for Thoma Bravo, which is down to $63.75/share from $66 cash in the first day of this month. The deal closes on Wednesday.
Citrix (CTXS) saw some positive news on Tuesday when Dealreporter said financial and regulatory approvals were underway in the sale of the company to Vista Equity and Elliott’s Evergreen Coast Capital. A $15 billion debt syndication deal is set for next month, and a bond offering earlier this month was oversubscribed, according to a Dealreporter entry.
Citrix up 5.8% last Friday after the company submitted to the European Commission for sale to Elliott and Vista Equity. The interim period of Phase 1 is set for July 22.
Investors may have reason to worry. Last Thursday, Orlando Bravo, founder of tech private equity giant Thoma Bravo, said he believes the tech sector has much more to offer.
Bravo said last Thursday in an interview on CNBC. “When those companies really start to answer investors the question that you mentioned, the path to profitability, they will not love what they see. “
