Publicly traded enterprise technology vendor Citrix today announced that it will spin off its GoTo business, including the GoToMeeting video conferencing service, as a new publicly traded company.
This business generated around $600 million in revenue in products and services for the first three quarters of the year, Citrix said in a statement on the news.
The move comes five months after activist shareholder Elliott Management sent a letter to the Citrix board in which it proposed, among other things, exploring strategic options for the GoTo business.
Citrix first came out with GoToMeeting in 2004. Grasshopper, a phone technology company that Citrix acquired earlier this year, is also part of the new GoTo company that's being spun off.
As a result of the shake up, 1,000 full-time and contract workers will be cut from Citrix, in addition to those being spun out in the new company, according to a statement.
Citrix will be able to save $200 million in annualized pre-tax earnings as a result of this move. The company will double down on its existing products, including NetScaler, ShareFile, and XenDesktop.