24 Sep Citrix scrambles to sell itself, report says
Notable local employer Citrix System (CTXS: Nasdaq) is looking to sell itself whole before an activist investor forces the company into the scrapyard, wire news service Reuters is reporting.
Citing unidentified sources, a Reuters article said the cloud computing firm has reached out to computer giant Dell and private equity firm Silver Lake Partners as potential buyers.
The activity comes as activist hedge fund Elliott Management, which scooped up 7 percent of Citrix’s stock earlier this year, is pressuring Citrix to sell itself in parts. Elliott says the Santa Clara, California company is worth less than the sum of its parts and is pushing for an asset sale.
The fund has suggested the Citrix spin off or sell its popular GoToMeeting teleconferencing technology, as well as another popular tool, NetScaler, that speeds up Internet speed on online apps. The financier has gained a seat on the company’s board and is pushing for more independent director support of its idea.