Citrix Systems: Tough Credit Conditions Delay Leveraged Buyout Acquisition
In January, U.S. investment management firms Vista Equity Partners and Elliott Investment Management agreed to privatize Citrix Systems (CTXS) through a leveraged buyout (LBO) transaction. However, the current market conditions have delayed the transaction as the cost of debt rises. I am neutral on the stock. The deal is valued at around $16.5 billion, including debt, and shareholders will receive cash of $104 per share. As a result, Citrix stock has shown marginal changes in terms of price action since. Indeed, CTXS has hovered around a range of $100 to $101 per share since the acquisition was announced.
Citrix Systems: Tough Credit Conditions Delay Leveraged Buyout Acquisition
In January, U.S. investment management firms Vista Equity Partners and Elliott Investment Management agreed to privatize Citrix Systems (CTXS) through a leveraged buyout (LBO) transaction. However, the current market conditions have delayed the transaction as the cost of debt rises. I am neutral on the stock. The deal is valued at around $16.5 billion, including debt, and shareholders will receive cash of $104 per share. As a result, Citrix stock has shown marginal changes in terms of price action since. Indeed, CTXS has hovered around a range of $100 to $101 per share since the acquisition was announced.