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5 Things To Know About Citrix’s Acquisition Of Wrike

Rick Whiting

Citrix Systems is paying $2.25 billion to buy work management application vendor Wrike.

The Financial Impact

As of the close of trading Tuesday, the day the acquisition was announced, Citrix shares were trading at $135.36, up $3.36 per share or 2.55 percent for the day.

Citrix said it expects Wrike to generate approximately 30 percent stand-alone growth in 2021 to between $180 million and $190 million in annual recurring revenue.

Citrix said the acquisition’s financing and purchase accounting impacts to deferred revenue will affect 2021 non-GAAP earnings per share. Integration and other costs related to the acquisition are expected to be modestly dilutive to non-GAAP earnings per share in 2021. The transaction is expected to be neutral to Citrix’s fiscal year 2022 non-GAAP earnings per share and free cash flow, and accretive thereafter.

The announcement of the Wrike acquisition came the same day Citrix announced its 2020 fourth-quarter and full-year (ended Dec. 31) results.

For the quarter Citrix reported revenue of $809.7 million (essentially flat with $809.8 million one year before) and net income of $112.1 million (down nearly 46 percent from $207.1 million one year earlier).

For all of 2020 Citrix reported revenue of $3.24 billion, up 7.5 percent from $3.01 billion in 2019.

 
Rick Whiting

Rick Whiting has been with CRN since 2006 and is currently a feature/special projects editor. Whiting manages a number of CRN’s signature annual editorial projects including Channel Chiefs, Partner Program Guide, Big Data 100, Emerging Vendors, Tech Innovators and Products of the Year. He also covers the Big Data beat for CRN. He can be reached at rwhiting@thechannelcompany.com.

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