Tuesday, July 28, 2015

Citrix's CEO Steps Down, Elliot Mgt. Exec Joins Board

Mark Templeton has decided to step down as president and CEO of Citrix Systems. He has served in that position since 1998. The Citrix Board has initiated a CEO search process and has retained Heidrick & Struggles to assist with the process of identifying and evaluating candidates.

Citrix also announced a cooperation agreement with Elliott Management Corporation, an investment firm whose affiliated funds own approximately 7.5 percent of the company’s common stock.  Elliott’s Jesse Cohn has been appointed to the Citrix board of directors to replace Asiff Hirji who has decided to step down from the company's board, effective immediately. In addition, as part of its continuing board evolution process, the company will commence a search for an additional independent board member, mutually agreeable to Citrix and Elliott, who will replace a current board member when appointed. In addition, Elliott and certain of its affiliates have agreed to customary standstill, voting and other provisions for a period of at least a year. Citrix has also formed an operations committee, which will work closely with the company’s management team on a comprehensive operational review focusing on improving Citrix’s margins, profitability and capital structure.

https://www.citrix.com/news/announcements/jul-2015/cooperation-agreement.html

Elliott Sends Letter to Citrix Board of Directors

Elliot Management Corp. published an open letter to the Board of Directors of Citrix, saying it believes the company can achieve a notable increase in shareholder value by implementing a new management plan and undertaking structural reforms.

Elliot currently holds 7.1% of Citrix Systems' stock.

Specifically, Elliot said it believes that Citrix can achieve a stock price of $90 ~ $100+ per share by the end of 2016, which represents a rise of 50%, by improving its operational performance given that it great products in strong markets. One area of concern for Elliot is the company's cost structure, which has grown faster than revenues.

Elliot, which also criticized Citrix's product portfolio as too broad, is presenting a new operating plan for the company.

http://www.elliottmgmt.com

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