LogMeIn said that it has entered into a definitive agreement to acquire Jive Communications, a provider of cloud-based phone systems and Unified Communications services. Upon closing, the deal will accelerate LogMeIn’s overall Unified Communications and Collaboration (UCC) strategy and bolster LogMeIn’s collaboration portfolio like GoToMeeting, GoToWebinar, OpenVoice, and join.me. The deal is expected to close during the second quarter of 2018, subject to certain regulatory approvals and customary closing conditions.
LogMeIn deals in web conferencing and web events. Company claims that it serves 25 million users, seven million meetings, and over 900 million conferencing minutes every month. With this deal, the firm is likely to bolster growth further. Headquartered in Orem, Utah, Jive Communications is a privately held, venture-backed company with offices in the U.S., Canada and Latin America. With over 20,000 customers worldwide.
“We believe the combination of Jive’s voice, video, contact center and mobile applications with our collaboration products, GoToMeeting and join.me, will give LogMeIn comprehensive UCC offerings in the market,” said Bill Wagner, President and CEO of LogMeIn. “The result is a deal that will accelerate our overall growth, set a new standard in the UCC market, and provide us with a foundation upon which we’ll build the next generation of LogMeIn’s UCC portfolio.”
Following the close of the transaction, the parties anticipate that John Pope, the CEO of Jive Communications, will continue to run the Jive Communications business, reporting directly to Bill Wagner. “It’s a combination that immediately gives both parties the power to deliver significantly more value to our combined customer bases,” said John Pope, CEO of Jive Communications.
LogMeIn’s acquisition of Jive Communications, through its wholly-owned subsidiary LogMeIn USA, Inc., will be effected through a merger with Jive Communications continuing as a wholly-owned subsidiary of LogMeIn USA, Inc. Under the terms of the merger agreement, LogMeIn is expected to pay $342 million in cash upon close for all outstanding equity interests in Jive, subject to potential working capital and other adjustments as further described in the definitive merger agreement. LogMeIn is also expected to pay up to an additional $15 million in cash contingency payments upon the achievement of specified milestones over the two-year period following the closing of the transaction.
Consummation of the merger is subject to various conditions, including, among others, expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and consent of the Federal Communications Commission and certain other customary closing conditions.
In a May 2017 report entitled, “Worldwide Unified Communications and Collaboration Forecast, 2017–2021,” IDC reports that the UCC market will reach $33.8 billion in total worldwide revenue in 2017. As shared at LogMeIn’s recent Investor Day, the company estimates the total addressable market opportunity to be more than $25 billion of that total.For all the latest News, Follow us on Twitter and Facebook