Logitech gobbles up LifeSize; Enters video conferencing

Summary:Logitech, a maker of Webcams and other peripherals, will acquire LifeSize Communications for $405 million in cash. The move puts Logitech into the middle of the video conferencing market.

Logitech, a maker of Webcams and other peripherals, said Tuesday it will acquire LifeSize Communications for $405 million in cash. The move puts Logitech into the video conferencing market.

LifeSize offers high-def video conferencing systems. LifeSize's customers range from small and medium businesses to large companies. I've tested out a few LifeSize systems and found them to be solid systems for the money.

The move by Logitech (statement, Techmeme) means that most of the standalone video conferencing players have been acquired. Cisco is planning to buy Tandberg, but having some trouble. And once LifeSize is off the board Polycom will be the last player standing.

In a statement, Logitech CEO Gerald Quindlen said the plan is to use LifeSize to move beyond low-end Webcams into the corporate market. The two companies combined should be able to stake out some solid turf among smaller companies.

Among the benefits outlined by the companies:

  • LifeSize can use Logitech's supply chain heft for distribution;
  • Logitech can use LifeSize for more of a foothold in the corporate market;
  • The two companies can pursue more unified communications systems.

Logitech will operate LifeSize as a separate division based in Austin. Craig Malloy, CEO of LifeSize, will run the unit and report to Quindlen. LifeSize expects $90 million in revenue for 2009.

Related: LifeSize PassPort: The First Skype-Compatible Telepresence System

Dave Greenfield: Logitech Buys LifeSize. Now what about Polycom?

Topics: Hardware, Collaboration

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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