Analyst Note| Dan Romanoff, CPA |
We are maintaining our fair value estimate for narrow-moat Citrix at $104 per share, as the pending takeover by Vista Equity Partners and Evergreen Coast Capital looms. On April 21, 2022, Citrix shareholders approved the acquisition, which was for $104 per share in cash. The deal is still expected to close in mid-2022. With shares trading around $93 per share, the market is suggesting there is a chance the deal might not close or might close at a lower price. We continue to believe the deal will go through as proposed. Prior to the acquisition announcement, we had viewed Citrix as a "show me" story given some of the persistent demand and execution issues the company had been experiencing.