Multinational software company Citrix Systems announced that it will spin off its GoTo business as a new publicly traded company.
In the first three quarters of the year the business generated approximately $600 million in revenue in products and services.
The spinoff will create a company made up of GoToAssist, GoToMeeting, GoToMyPC, GoToTraining, GoToWebinar, Grasshopper and OpenVoice.
“Upon review, it is clear to us that the GoTo family of products is best suited to grow and operate as a standalone business,” said Bob Calderoni, interim CEO and president and executive chairman of Citrix.
“This separation will create a leading, pure-play SaaS company that will have a targeted focus with the flexibility to invest in its portfolio of products.
“It will also allow Citrix to refocus and amplify investment in our core mission to enable secure and reliable delivery of apps and data for the modern enterprise. We look forward to a seamless transition for our employees, customers, partners and other key stakeholders.”
Citrix will save up to $200 million in annualized pre-tax money because of the spinoff.
Chris Hylen, senior vice president and general manager of the Citrix Mobility Apps Business Unit, will become CEO of the new company.
“I am excited to launch our GoTo businesses as a new company strategically positioned for sustained, profitable growth,” said Hylen.
“We are building on a strong base of offerings and look forward to creating even more value for our employees, customers and shareholders. I am confident that the GoTo family of products will excel as a standalone business.”
Citrix also said that it plans on restructuring its labor force and focus on its core business. It will slash up to 1,000 full-time and contract jobs.
Shares of Citrix fell 2.4% in after hours trading.
