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Citrix takes a $2b bet on Slack rival WrikeINTL

Citrix takes a $2b bet on Slack rival Wrike

Citrix Systems Inc. (CTXS) is reportedly in talks to buy Slack’s rival, Wrike Inc., for over $2b. Taking home the big prize is Vista, the California-based company, which bought a majority stake in Wrike for about $800m back in 2018.

Citrix is in the business of selling work-from-home and cloud services, so it makes sense they would want to expand into the work-management software sphere.

While sources told Bloomberg the talks are in advanced stages, it is worth pointing out that the deal can still be called off. Citrix stocks closed about 2.8% higher following the news.

why it matters
The coronavirus pandemic has funneled considerable demand for work collaboration software, and providers such as Wrike have grown massively in the past few months. Other shining shares include Slack, which was recently purchased by Salesforce.com, Inc. If Citrix does take over Wrike, this will fuel competitiveness in the industry and force other players to up their game.