https://www.investopedia.com/articles/financial-theory/08/leveraged-buyouts.asp
Well we know it won't be the "Savior Plan" so are there any educated guesses as to which of the other 3 it will be?
- The Repackaging Plan
- The Split-Up
- The Portfolio Plan
3 replies (most recent on top)
What are people's thoughts on the value proposition they are trying to achieve? Vista bought Tibco in 2014 for 4.3B taking it private and since has added on several related products to Tibco's core SOA platform to increase value. They have reportedly done well with growing the company through acquisition and attempted already a couple of times to sell Tibco for a tidy profit (see https://siliconangle.com/2021/07/23/report-vista-equity-partners-sell-tibco-7-5b/ ) . However, Tibco's product line is not at all related to Citrix's products so it is not really clear where there is business synergy. Considering Citrix could be considered somewhat of a conglomerate of workspace / remote access related products, maybe the idea is that Vista can do a much better job of growing the company through aquisition like they apparently have done already with Tibco . Citrix leadership has not done so well at doing that historically, yet there are likely a lot of good opportunities there if the right acquisitions were made for the right price.
More likely to be B followed by A - Break up the three component parts and then repackage them as individual units. Nobody wants to buy all the disparate bits of Citrix in one lump...
Because two separate entities are buying the company, I could see it being a combination of B (Elliott) and C (Vista/Tibco).