This article explains some of the background and how the banks lost money on the deal:
https://prospect.org/power/griftrix-citrix-systems-debt-deal...
Citrix acquired and merged with Tibco for $16.5B
11–20 of 191 posts
Re: Citrix acquired and merged with Tibco for $16.5B
#12The next decade is going to be heaven for M&A. Also, the yields on the bonds Citrix issued were eye-popping.
Afaik the bonds are issued by the PE firms executing the deal, and it's taken many months to close. The debt has sat on bank books for a significant portion of time, so the yields are reflective of the price needed to unload them in the current market vs a market that was more conducive to the offering when the deal was initially agreed upon
PE firms don’t issue debt for leveraged buyouts. The debt is issued by the target company, ie. Citrix. Citrix is responsible for servicing the debt, not the PE firm.
Re: Citrix acquired and merged with Tibco for $16.5B
#13Maybe they can fix the crapshoot that is Tibco-Rendevous (RV)
Is it really that bad?
When i worked it it i quite liked it
Re: Citrix acquired and merged with Tibco for $16.5B
#14I wonder if this will affect the open core XenServer project. backstory: Citrix has been releasing a community version of their xenserver product (based on the open source Xen project) but over the last few years they have been removing features from the open core version, going so far as to remove Xen from the name in late 2019 https://news.ycombinator.com/item?id=15974615 https://news.ycombinator.com/item?id=194794…
[deleted]
Re: Citrix acquired and merged with Tibco for $16.5B
#15Aren't Tibco EAI? Why are they buying Citrix?
Re: Citrix acquired and merged with Tibco for $16.5B
#16Aren't Tibco EAI? Why are they buying Citrix?
TIBCO is not buying Citrix. Vista and Elliot bought Citrix and merged it with TIBCO which was owned by Vista.
Re: Citrix acquired and merged with Tibco for $16.5B
#17Earlier quoted context omitted.
Afaik the bonds are issued by the PE firms executing the deal, and it's taken many months to close. The debt has sat on bank books for a significant portion of time, so the yields are reflective of the price needed to unload them in the current market vs a market that was more conducive to the offering when the deal was initially agreed upon
PE firms don’t issue debt for leveraged buyouts. The debt is issued by the target company, ie. Citrix. Citrix is responsible for servicing the debt, not the PE firm.
Part of the way M&A activity destroys companies.
Not that anyone would miss Citrix except for their open source contributions, even if they are pared down.
Re: Citrix acquired and merged with Tibco for $16.5B
#18I wonder if this will affect the open core XenServer project. backstory: Citrix has been releasing a community version of their xenserver product (based on the open source Xen project) but over the last few years they have been removing features from the open core version, going so far as to remove Xen from the name in late 2019 https://news.ycombinator.com/item?id=15974615 https://news.ycombinator.com/item?id=194794…
Removing Xen from the name had nothing directly to do with changing the model for Xen Server; all Citrix products were re-branded at the same time.
You never know what corporations will do with products they're supporting, whether they're open-source or not. (Ask VMWare customers how they're feeling now, for instance.) But with open-source, if there's a large enough user base, someone can step in and take over the software to fill the gap -- and in fact, that's exactly what's happened with XenServer: the XCP-ng forked the open-source part of XenServer, and now Vates (the company behind XCP-ng) is actively collaborating with Citrix on future development. Removing features from "free XenServer" wouldn't really have that big of an impact on customers, since they'd almost certainly end up in XCP-ng anyway.
Re: Citrix acquired and merged with Tibco for $16.5B
#19I just find it fascinating that I can go through my life and see things like this: "[Company I've never heard of] and [Another company I've never heard of], something something, billions and billions of dollars". And these companies and the people who run them probably have a non-trivial impact on my life, if not directly than indirectly.
It's just fascinating.
Re: Citrix acquired and merged with Tibco for $16.5B
#20What year did I wake up in? Is this 2005?