Cloud Software Group Inc., the parent company of Citrix Systems Inc., is considering selling its content collaboration platform ShareFile as it looks to streamline its operations under its private equity owners, according to sources familiar with the matter. The company is working with a financial advisor to explore interest from potential buyers for ShareFile, which could be valued at around $1.5 billion. ShareFile offers document-sharing and synchronization software that integrates with various applications, such as Microsoft Outlook. Private equity firms are likely to show interest in acquiring ShareFile, although discussions are in the early stages and there is no guarantee that a deal will be reached.
Cloud Software Group, which was formed through the merger of Citrix and Tibco Software, was taken private in a $13 billion deal by Elliott Investment Management and Vista Equity Partners. Vista and Elliott combined Citrix with Tibco, an enterprise data management company owned by View. The company has been actively refinancing its debt, including a recent $6.5 billion leveraged loan, the largest in the United States so far in 2024.
Representatives for Cloud Software Group, Vista Equity Partners, and Elliott Investment Management either declined to comment or did not respond to requests for comment on the potential sale of ShareFile. Cloud Software Group’s efforts to streamline its operations and improve its financial position are likely driving the decision to explore a sale of ShareFile. The move comes as the company seeks to optimize its business and focus on core operations amid changing market dynamics and competitive pressures.
Overall, the potential sale of ShareFile by Cloud Software Group represents a strategic decision to divest a non-core asset and unlock value for the company and its shareholders. Private equity firms are expected to show interest in acquiring ShareFile, which offers valuable document-sharing and synchronization capabilities that integrate with popular applications. The outcome of the discussions remains uncertain, but the exploration of a sale indicates Cloud Software Group’s commitment to strategic growth and financial optimization.