Citrix Systems, Inc. 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:
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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,
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Citrix, which will focus on its strategic solutions for secure and
reliable delivery of applications and data.
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.