Join top executives in San Francisco on July 11-12, to hear how leaders are integrating and optimizing AI investments for success. Learn More
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.
VentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative enterprise technology and transact. Discover our Briefings.