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Citrix Systems Stock Jumps on Report Elliott, Vista Mull Joint Bid

Citrix Systems surges on a report that Elliott Management and Vista Equity are considering a joint bid for the software producer.
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Citrix Systems  (CTXS) - Get Citrix Systems, Inc. Report stock jumped on Tuesday following news reports that Elliott Investment Management and Vista Equity Partners were considering a joint bid for the software company.

Shares of the Fort Lauderdale, Fla., company at last check were up 13% at $94.19.

The discussions are in the early stages and Elliott Management, the New York investment firm, and Vista could still decide not to pursue a bid, Bloomberg reported, citing people familiar with the matter.

Vista, the Austin private-equity firm, is considering using its Tibco portfolio company as part of the transaction

Citrix has been exploring options including a potential sale, Bloomberg reported in September. 

Those considerations came as Elliott took a 10% stake in Citrix, its second time investing in the workplace software make.

Last month, Bob Calderoni, Citrix's interim president and chief executive, said during the company's third-quarter earnings call that "there's lot to point to on the positive side, but I think it's fair to say there've also been some missteps along the way, which is clearly overshadowing our success."

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"These missteps are largely in our go-to-market motion and in our own forecasting, and I'm confident they're all fixable.," he said. "We need to shore up our channel programs and put in place the right incentives for our channel partners."

The company also needs to "focus sales investments on direct selling quota-carrying individuals and eliminate excess investments in overlays and shared commissions," Calderoni said.

Citrix reported earnings of $1.20 a share, beating the Zacks consensus estimate of 88 cents a share, and coming in below the year-ago figure of $1.38 a share.

Vista, Elliott and Citrix did not immediately respond to requests for comment.

In October, Citrix Systems said that CEO David Henshall would leave the company. 

Software deals have been rampant this year with both private equity firms and strategic buyers chasing them. 

On Monday, Oracle  (ORCL) - Get Oracle Corporation Report said it would pay $28.3 billion for electronic medical records company Cerner  (CERN) - Get Cerner Corporation Report, likely capping the best year for global merger deals in market history.