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Software company Citrix Systems is in advanced talks to buy California-based collaborative work management platform provider Wrike from Vista Equity Partners for over $2 billion, Bloomberg has learnt.
According to the report, Citrix (CTXS) could announce a deal with Vista as early as this week, which would be the company’s largest acquisition to date. Furthermore, if the deal goes through, it would help Citrix to expand its collaboration software business.
Meanwhile, the deal price suggests that Vista is likely to gain significantly on its investment. Notably, Vista had acquired a majority stake in Wrike in 2018. (See CTXS stock analysis on TipRanks)
On Jan. 15, Citigroup analyst Walter Pritchard maintained a Buy rating and a price target of $205 (55.3% upside potential) on CTXS, as he expects the company to deliver strong 4Q results. However, he remains concerned about the company's 1Q guidance. Citrix is set to report its 4Q results on Jan. 21. In a note to investors, the analyst said that he expects “positive FY21 CTXS-specific dynamics.”
From the rest of the Street, the stock scores a cautiously optimistic outlook with the analyst consensus of a Moderate Buy based on 4 Buys and 3 Holds. The average analyst price target of $169 implies upside potential of about 28% to current levels. Shares have gained 16.1% in one year.
Meanwhile, the TipRanks’ stock investor sentiment tool shows that investors currently have a Negative stance on CTXS.