Wrike Acquisition: Key Details, Impact, and What Comes Next

Citrix's acquisition of Wrike marks a significant move in the collaborative work management industry. By integrating Wrike's platform with Citrix's digital workspace solutions, the acquisition aims to enhance productivity and streamline hybrid work environments. This strategic partnership is set to simplify remote work, enabling employees to stay engaged and productive from any location.

What Is Wrike?

Founded in 2006, Wrike offers versatile project management software designed to enhance visibility and streamline workflows. Its core features include dashboards, AI-driven automations, Gantt charts, and customizable templates. Wrike stands out with its enterprise-grade security, 24/7 global support, and seamless integration with popular apps like Slack and Microsoft. The platform centralizes work, automates processes, and aligns strategy with execution, making it a leader in the collaborative work management market.

Who Acquired Wrike?

Citrix is a prominent provider of IT solutions, specializing in secure, scalable, and high-performing technologies. The company offers a range of key products, including Citrix App and Desktop Virtualization, Citrix Secure Private Access, and NetScaler Application Delivery and Security. Citrix holds a significant market position, particularly in virtual desktop infrastructure (VDI) and secure access solutions, and is recognized for its leadership across various sectors such as healthcare, financial services, and government.

When Was Wrike Acquired?

Citrix completed its acquisition of Wrike on March 1, 2021. This acquisition came at a pivotal moment when the COVID-19 pandemic had accelerated the need for robust digital transformation solutions. Companies worldwide were grappling with the challenges of remote and hybrid work environments. By integrating Wrike's collaborative work management platform with Citrix's digital workspace solutions, the acquisition aimed to address these challenges, enhancing productivity and streamlining remote work capabilities.

Why Was Wrike Acquired?

• Market Expansion: The acquisition allows Citrix to expand its market by integrating Wrike's project management capabilities into its digital workspace solutions. This move is aimed at enhancing Citrix's offerings and reaching a broader customer base, especially those needing robust remote work tools. Together, Citrix and Wrike will serve over 400,000 customers across 140 countries.
• Technology Integration: The integration of Wrike's SaaS project management platform with Citrix's cloud-delivered digital workspace experience is a key technological synergy. This combination aims to provide a seamless and secure environment for teams to collaborate and access resources efficiently across various channels, devices, and locations. Wrike’s cloud capabilities will complement Citrix’s offerings, creating new revenue opportunities.
• Competitive Advantage: By acquiring Wrike, Citrix gains a competitive edge in the collaborative work management market. Wrike's capabilities in project tracking and productivity enhancement complement Citrix's existing solutions, providing a more comprehensive offering to customers. This integration helps Citrix to better meet the needs of its users, thereby strengthening its position against competitors.

Acquisition Terms

• Acquisition Price: $2.25 billion
• Payment Method: Combination of new debt and existing cash and investments, with a commitment from JPMorgan Chase Bank for a $1.45 billion bridge loan facility
• Key Conditions or Agreements:
  • The transaction has been unanimously approved by the boards of both Citrix and Wrike.
  • The transaction is expected to close in the first half of 2021, subject to regulatory approvals and other customary closing conditions.
  • Upon closing, Wrike will continue to operate independently, with its CEO reporting to Citrix’s CFO.
  • Financing and purchase accounting impacts to deferred revenue will affect 2021 non-GAAP earnings per share.
  • Integration and other costs related to the acquisition are expected to be modestly dilutive to non-GAAP earnings per share in 2021.
  • The transaction is expected to be neutral to Citrix’s fiscal year 2022 non-GAAP earnings per share and free cash flow, and accretive thereafter.

Impact on Wrike

The acquisition of Wrike by Citrix has led to notable changes in operations and management. Wrike now operates under the Citrix umbrella, with its founder, Andrew Filev, continuing to lead the team while reporting to Citrix’s CFO. This integration aims to leverage Citrix's digital workspace infrastructure to enhance Wrike's collaborative work management platform. Additionally, Wrike has hired new executives, including Thomas Scott as CFO and Brian Clark as CRO, to drive its growth and innovation further.

Product offerings and services have also seen significant enhancements. The acquisition has enabled Wrike to scale its product and accelerate its roadmap, introducing features like AI-driven automations and custom item types. Customers can expect a more unified and secure digital workspace experience, combining Citrix’s and Wrike’s strengths. Employee reactions have been generally positive, with a focus on innovation and customer success. Customers have welcomed the acquisition, anticipating faster product development and better integration with IT systems.

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