LogMeIn sells to private equity firms for $4.3 billion
Remote access and unified communications software maker LogMeIn is exiting the public market. The company announced Tuesday that it has agreed to be acquired by private equity firms Francisco Partners and Evergreen Coast Capital Corporation for $4.3 billion.
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LogMeIn, which owns LastPass, GoToMeeting, GoToWebinar, OpenVoice and join.me, said becoming a private company will help fuel its next phase of growth and product investment.
"Together, Francisco Partners and Evergreen are committed to addressing the unique needs of both our core and growth assets," said LogMeIn CEO Bill Wagner. "We believe our partnership with Francisco Partners and Evergreen will help put us in a position to deliver the operational benefits needed to achieve sustained growth over the long term."
Like most enterprise software players, LogMeIn expanded its portfolio via acquisitions over the last several years. The company acquired the GoTo product line from Citrix in January 2017 for $1.8 billion. In 2015, LogMeIn bought password management software startup LastPass for $110 million, and later acquired Israeli software firm Nanorep for around $45 million. One of its last sizable investments came in February 2018 with its purchase of Jive Communications for $342 million.
More recently, LogMeIn redesigned its popular GoToMeeting platform to improve user experiences. The platform has more than 25 million users a month, with its main competition coming from Cisco. However, the unified communications and collaboration (UCC) market has a number of innovative players, like Zoom, BlueJeans and Highfive.
The private equity buyout agreement includes a 45-day "go-shop" period for LogMeIn. If the deal goes through, it is expected to close in mid-2020.
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