Citrix Systems Exploring Sale After Elliott Management Stake, Stock Drop: Report

Citrix is considering a sale following a 16 percent drop in its share price and activist investor Elliott Management buying a 10 percent stake in the company, according to a report from Bloomberg.

Citrix Systems is considering a sale following a 16 percent drop in its share price year to date and activist investor Elliott Management Corp. buying a 10 percent stake in the company, Bloomberg reported Tuesday.

The Fort Lauderdale, Fla.-based Citrix is working with advisers and gauging potential buyer interest over the next few weeks, according to Bloomberg, citing anonymous sources. Citrix may decide against a sale in the end, according to the report.

[RELATED: Citrix CEO Vows To Stay ‘Channel-Oriented’ Amid Company’s Cloud Transformation ]

CRN has reached out to Citrix and Elliott Management for comment.

Citrix shares rose 2 percent to $112.24 Wednesday on the news, giving the company a $13.9 billion market value. The stock has seen the largest drop since 2008 after disappointing second-quarter results in July.

Elliott Management previously bought a stake in the company in 2015 and Elliott partner Jesse Cohn joined the board. He left in 2020, according to a Citrix statement from the time.

Citrix previously explored sales and spinoff strategies in 2017 and 2015.

Citrix partners at the time voiced displeasure with Elliott’s 2015 presence to CRN.

In May, Citrix CEO David Henshall told CRN that the company will continue to rely on partners as it moves toward a business model with more subscriptions, recurring revenue and more revenue per user.

“Citrix is a channel-oriented company — we always have been,” Henshall told CRN. “And channel plays an incredibly important role. The vast majority of our solutions are fulfilled through partners, and they will continue to be.”