In Tuesday's premarket session, Citrix Systems shares were up 8% after a major newswire reported that activist investor Elliott Management and Vista Equity Partners are mulling a combination proposal for the business.

According to the article, talks are still in the early stages, and Vista Equity, a tech-focused private equity group, may utilize Tibco, one of its portfolio companies, as part of the proposal.

Citrix Systems - Wikipedia

Citrix was negotiating with consultants to investigate a potential sale, according to a major newswire in September. The talks came after Elliott purchased a 10% share in the company. Citrix is currently valued at slightly over $10 billion on the stock market.

Elliott has a reputation for pursuing companies that are taking initiatives to boost shareholder returns. Moves like reshuffled top management forced buybacks, and calls for better capital allocation are examples of this.

Citrix specializes in software for remote access. During the epidemic, that specialty was in high demand, and it appears that it will continue to be so as the work-from-home model gains hold. In the meanwhile, the company has switched to a subscription model, which has stifled revenue growth in the short run.

The company's overall sales of $778 million in the third quarter were up just 1% year over year. This came after a poor quarter in which revenue climbed only 2% year over year.

The stock price of the company has dropped 37 % in a year whereas the Nasdaq 100 has gained roughly 23 %.

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