Citrix to acquire Wrike for US$2.25 billion

Citrix Systems has entered into a definitive agreement to acquire Wrike, a SaaS collaborative work management space provider, for US$2.25 billion in cash.

Citrix provides a digital work platform from which companies can deliver unified, secure and reliable access to systems, information and tools.

With the addition of Wrike's offerings, Citrix will expand its platform to include new, collaborative work management capabilities that enable companies to simplify work execution and boost employee effectiveness and productivity by automating and streamlining team collaboration as well as unifying workflows across all employees and work styles.

The combination will bring together Citrix's digital work platform and Wrike's work management solution for collaboration and work execution, providing additional tools for employees in an office or remote working.

The acquisition of Wrike's cloud-delivered capabilities is inline with Citrix's strategy to become a complete SaaS-based work platform addressing the needs of various functional groups within the enterprise.

The combined company will offer customers an enhanced value proposition through complementary solutions, with new revenue opportunities both within existing installed customer bases and new lines of business buying centres, including marketing, professional services, and HR.

Together, Citrix and Wrike will serve over 400,000 customers across 140 countries.

In addition, upon closing, Wrike will gain access to Citrix's ecosystem of partners, creating new opportunities within the ecosystem to drive additional value for customers.

"Work today is happening everywhere – at home, in the office and on the road. We believe that in the future, success will go to those companies that can support flexible and hybrid work models and provide a consistent, secure and efficient experience that removes the complexity and noise from work so employees can focus and perform at their best, wherever they happen to be," says Citrix president and CEO David Henshall.

"Together, Citrix and Wrike will deliver the solutions needed to power a cloud-delivered digital workspace experience that enables teams to securely access the resources and tools they need to collaborate and get work done in the most efficient and effective way possible across any channel, device or location.

"When it comes to the future of work, Citrix and Wrike share a common vision and mission: to reduce the complexity and chaos of work and empower every person, team, and organisation to achieve their very best. Together, we will unlock the workspace of the future, truly transforming the work experience and equipping people with an innovative set of solutions they can use to exceed goals and keep business moving forward," adds Wrike founder and CEO Andrew Filev.

Wrike ended the calendar year 2020 with more than $140 million in unaudited SaaS ARR, reflecting more than 30% CAGR in SaaS ARR over the prior two years.

The company is expected to have approximately 30% stand-alone growth to between $180 million and $190 million in SaaS (ARR) in 2021, with the opportunity to accelerate growth over time under Citrix's ownership.

Citrix expects to fund the transaction with a combination of new debt and existing cash and investments.

The transaction is expected to close in the first half of 2021, subject to regulatory approvals and other customary closing conditions.

Upon closing, Filev will continue to lead the Wrike team and report to Citrix EVP and CFO Arlen Shenkman.