Provides both Citrix and New “GoTo” Company
with increased focus and flexibility to deliver long-term value for
shareholders
Citrix Systems, Inc. (NASDAQ:CTXS) today announced plans to spin
off its GoTo family of products into a separate, publicly traded
company. The transaction, which is intended to be a tax-free
spinoff to Citrix shareholders, is expected to be completed in the
second half of 2016. Citrix’s announcement to pursue a separation
follows a thorough review of strategic alternatives for the GoTo
family of products.
Citrix believes that this strategic decision will allow Citrix
and the company established by the spinoff to enhance their
strategic focus and respective competitive positions, while
permitting Citrix to improve operational efficiency. Immediately
following the separation, Citrix shareholders will own shares in
two publicly traded companies:
- The company established as a result of
the spinoff will be made up of GoToAssist, GoToMeeting, GoToMyPC,
GoToTraining, GoToWebinar, Grasshopper and OpenVoice. This company
will more effectively allocate resources in line with its own
market opportunity, unique growth priorities and go-to-market
capabilities, as well as adapt more quickly to SaaS market and
customer dynamics; and,
- Citrix, which will focus on its
strategic solutions for secure and reliable delivery of
applications and data. Please see related news release here.
For the trailing twelve months ended September 30, 2015,
unaudited revenues were approximately $600 million for the products
and services to be spun off.
“Upon review, it is clear to us that the GoTo family of products
is best suited to grow and operate as a standalone business,” said
Bob Calderoni, interim CEO and president and executive chairman of
Citrix. “This separation will create a leading, pure-play SaaS
company that will have a targeted focus with the flexibility to
invest in its portfolio of products. It will also allow Citrix
to refocus and amplify investment in our core mission to enable
secure and reliable delivery of apps and data for the modern
enterprise. We look forward to a seamless transition for our
employees, customers, partners and other key stakeholders.”
Leadership
Upon completion of the separation, Chris Hylen, who currently
serves as senior vice president and general manager of the Citrix
Mobility Apps Business Unit, will serve as CEO of the new company.
Mr. Hylen is a 20-year veteran leader in the technology industry
with extensive experience in SaaS solutions for the SMB space.
Since joining Citrix in July 2013, his leadership has resulted in
strong outcomes, including improved innovation, product quality,
and customer satisfaction.
“I am excited to launch our GoTo businesses as a new company
strategically positioned for sustained, profitable growth,” said
Hylen. “We are building on a strong base of offerings and look
forward to creating even more value for our employees, customers
and shareholders. I am confident that the GoTo family of products
will excel as a standalone business.”
Citrix plans to provide further details about the board of
directors and management team as it works towards completion of the
separation.
Additional Transaction Details
Citrix will disclose additional information regarding the
spinoff, including historical financial and capitalization
information, in a Form 10 to be filed with the Securities and
Exchange Commission (“SEC”) on a future date. The name of the new
company will be determined in the coming months.
The separation is subject to certain customary conditions, the
effectiveness of a Form 10 filing with the SEC and final approval
by the Citrix board of directors. The spin-off transaction will not
require a shareholder vote. There can be no assurance regarding the
ultimate timing of the spinoff or that the spinoff will ultimately
occur. Citrix expects to incur separation and restructuring charges
through the completion of the transaction as it works to separate
the two businesses.
Goldman, Sachs & Co. and Qatalyst Partners are serving as
financial advisors to Citrix, and Goodwin Procter LLP and Skadden,
Arps, Slate, Meagher & Flom LLP are serving as legal
counsel.
Conference Call
Citrix will host a conference call today at 4:45 p.m. E.T. to
review the proposed separation and the results of its operational
and strategic review. The call will include a slide presentation
and participants are encouraged to view the presentation via
webcast at http://www.citrix.com/investors.
The conference call may also be accessed by dialing: (888)
799-0519 or (706) 634-0155, using passcode: CITRIX. A replay of the
webcast can be viewed by visiting the Investor Relations section of
the Citrix corporate website at http://www.citrix.com/investors for
approximately 30 days.
About Chris Hylen
Since 2013, Chris Hylen has held the role of senior vice
president and general manager of the Mobility Apps Business Unit at
Citrix. Hylen has more than 20 years of senior general management
leadership experience in the SaaS technology space. Prior to
joining Citrix, Hylen was the senior vice president and general
manager of Payment Solutions at Intuit, where he successfully drove
the development of innovative payment products and services,
including the launch of Intuit’s first mobile credit card
processing solution. Before Intuit, he held executive roles at
Automatic Data Processing and American Express. Hylen holds a
bachelor’s degree in engineering from Widener University and an MBA
from Harvard Business School.
About Citrix
Citrix (NASDAQ:CTXS) is leading the transition to
software-defining the workplace, uniting virtualization, mobility
management, networking and SaaS solutions to enable new ways for
businesses and people to work better. Citrix solutions power
business mobility through secure, mobile workspaces that provide
people with instant access to apps, desktops, data and
communications on any device, over any network and cloud. With
annual revenue in 2014 of $3.14 billion, Citrix solutions are in
use at more than 400,000 organizations and by over 100 million
users globally. Learn more at www.citrix.com.
For Citrix Investors
This release contains forward looking statements which are made
pursuant to the safe harbor provisions of Section 27A of the
Securities Act of 1933 and of Section 21E of the Securities
Exchange Act of 1934. Investors are cautioned that statements in
this press release, which are not strictly historical statements,
including, without limitation, statements regarding the completion
and timing of the proposed spinoff, the future performance of core
Citrix and the GoTo businesses on a standalone basis if the spinoff
is completed, the expected strategic, operational and competitive
benefits of the proposed spinoff, and the effect of the separation
on Citrix, its shareholders, customers, partners and employees,
constitute forward-looking statements. The forward looking
statements in this release are not guarantees of future
performance. Those statements involve a number of factors that
could cause actual results to differ materially, including risks
associated with the failure to satisfy any conditions or otherwise
complete the proposed spinoff, timing of the proposed spinoff,
disruptions to execution due to the proposed spinoff and the
results of Citrix’s operational and strategic review, the
uncertainty as to whether the anticipated benefits from the
proposed spinoff will be realized if completed, costs and expenses
associated with the proposed spinoff, changes and transitions in
management personnel, the Board’s ongoing CEO search, the
recruitment and retention of qualified employees, the impact of the
global economy and uncertainty in the IT spending environment,
revenue growth and recognition of revenue, products and services,
their development and distribution, product demand and pipeline,
economic and competitive factors, the Company’s key strategic
relationships, as well as other risks detailed in the Company’s
filings with the Securities and Exchange Commission. Citrix assumes
no obligation to update any forward looking information contained
in this press release or with respect to the announcements
described herein.
Citrix® is a trademark or registered trademark of Citrix
Systems, Inc. and/or one or more of its subsidiaries, and may be
registered in the U.S. Patent and Trademark Office and in other
countries. All other trademarks and registered trademarks are
property of their respective owners.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151117006874/en/
Citrix Systems, Inc.For media inquiries:Eric Armstrong,
954-267-2977eric.armstrong@citrix.comorFor investor
inquiries:Eduardo Fleites,
954-229-5758eduardo.fleites@citrix.com
Citrix Systems (NASDAQ:CTXS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Citrix Systems (NASDAQ:CTXS)
Historical Stock Chart
From Apr 2023 to Apr 2024