Citrix has revealed its intention to purchase Wrike, a software-as-a-service (SaaS) platform focused on project management, from Vista Equity Partners for a sum of $2.25 billion. Vista Equity Partners initially acquired the company only two years prior.

Citrix, widely recognized for its digital workspace solutions, views this acquisition as strategically beneficial, particularly given the recent shift towards remote work prompted by the global pandemic. The integration of the two organizations is expected to create a robust and comprehensive solution, a perspective shared by Citrix CEO and President David Henshall.

“By uniting Citrix and Wrike, we will provide the necessary tools to support a cloud-based digital workspace, empowering teams to securely access essential resources and collaborate effectively, regardless of their location, device, or communication channel,” Henshall stated in an official announcement.

Andrew Filev, the founder and current CEO of Wrike, who has overseen the company through several transitions, expresses confidence in a positive outcome following the acquisition by Citrix.

“Becoming part of the Citrix organization will allow us to expand our product offerings and expedite our development plans, ultimately delivering enhanced value to our customers. We have consistently prioritized customer feedback in shaping our product, and this integration will enable us to accelerate that process,” Filev explained in a blog post announcing the agreement, a common sentiment expressed by leaders of companies being acquired.

Wrike currently reports an annual recurring revenue (ARR) of $140 million, with a growth rate of 30% per year. This translates to a valuation of approximately 16 times its current revenue, aligning with typical acquisition multiples observed in the current market. Furthermore, with Wrike projecting an ARR between $180 million and $190 million for the current year, the acquisition price may prove to be advantageous if these forecasts are realized.

While the financial details of Vista’s 2018 purchase were not disclosed, this transaction represents a significant return on investment, especially considering Wrike had previously secured only $26 million in funding.