Cloud Software Group, the parent company of Citrix Systems, is reportedly considering selling its ShareFile content-sharing platform. The move is seen as part of a broader strategy to streamline operations under private equity ownership. ShareFile, valued at approximately $1.5 billion, provides document sharing and collaboration software that integrates with Microsoft Outlook. Potential buyers are being gauged by a financial advisor, with private equity firms likely showing interest.
Industry experts suggest that the divestment of ShareFile could be driven by increased competition in the cloud-powered enterprise content management systems space. Established players like Box, Dropbox, and Microsoft’s offerings, along with emerging contenders, have intensified competition. The technological changes in the sector, evolving from client-server architecture to real-time cloud synchronization and now AI-driven collaboration, have reshaped the industry landscape.
As Microsoft expands its enterprise services and capabilities, companies like ShareFile, heavily dependent on Microsoft integration, face growing competition. The decision to sell ShareFile could be a strategic move to assess its future value against formidable competition. The recent privatization of Citrix, merging with Tibco Software into Cloud Software Group, has led to portfolio rationalization to streamline operations and manage debt resulting from the leveraged buyout. Financial restructuring, including a large leveraged loan, aims to alleviate some of the financial pressures.
Cloud Software Group, Vista Equity Partners, and Elliott Management, the entities involved, are yet to respond to the reports. The eventual sale of ShareFile, driven by broader strategic considerations and fierce market competition, could impact the landscape of enterprise content management solutions.
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https://www.computerworld.com/article/2112426/citrix-parent-mulls-selling-sharefile-amid-streamlining-efforts.html/amp/
