On Jan. 19, Holistic software company Citrix announced the acquisition of workplace management platform Wrike. The deal went through for $2.25 billion.
With Wrike now a part of Citrix's plan, the parent company's arch on distributed workplace offerings spans even further. The deal is an all-cash agreement, so you know the company is serious about propelling change.
Citrix grabs a hold of Slack competitor for greater reach
Wrike was founded in 2006, three years before the launch of the workplace communication platform Slack and more than a decade before Microsoft Teams came out. Since COVID-19 pandemic-era workers prefer remote teams, the technology becomes increasingly crucial.
Prior to the acquisition of Wrike, Citrix developed a platform called Citrix Workspace. The offering helps enterprise companies deploy virtual workspaces including oversight and security. Citrix Workspace is just one piece of the puzzle. The company offers a complete reel of cloud-based software. Now that Citrix has Wrike under its belt, you can expect Citrix Workspace to become more robust.
Wrike's features position it perfectly in the modern day
As a task management and communication platform, Wrike helps the estimated 42 percent of workers who clock in remotely get things done. The company offers the platform on a subscription basis using a SaaS (software-as-a-service) model. The enterprise-level SaaS market reached upwards of $94.2 billion in 2020. Wrike may have accounted for $142.5 million of that in revenue.
Investors interested in Wrike can use Citrix stock as a vehicle
Wrike stock isn't publicly traded on its own. However, now that Citrix has announced the acquisition, investors will be able to get a stake in Wrike through Citrix stock.
Citrix Systems trades under the ticker symbol "CTXS" on the Nasdaq Exchange. The stock fell as much as 31.78 percent during 2020. Since pre-market hours on Jan. 19, Citrix investors have responded mildly to the news. As of mid-morning, the shares are up just 1.86 percent since the previous close.
The momentum could grow as Citrix continues to develop its offerings with Wrike by its side. In the meantime, the stock looks like a slow and steady bet.
Wrike competitors on the stock market
Slack went public on April 26, 2019. Currently, the stock ("WORK" on the NYSE) is holding steady after a November rally of 68.9 percent. Overall, Slack investors seem more enthused than those with a stake in Citrix.
Meanwhile, Microsoft (creator of Teams) investors have enjoyed their usual fluctuations while retaining upward mobility. MSFT stock on the Nasdaq has grown 28.15 percent in the last 12 months.
Overall, the Citrix deal shows a steadfast emphasis on workplace productivity solutions, particularly those geared toward the work-from-home landscape. With many offices keeping their doors closed for the foreseeable future, integrated tech to connect team members becomes even more important.
The Wrike acquisition could put Citrix in a solid position to compete effectively against the leading names in the distributed workplace game.