Cloud-based provider of phone systems, LogMeIn has announced it will acquire Jive Communications in a bid to expand its market position and communications expertise.
The acquisition aims to increase LogMeIn’s position in the Unified Communications and Collaboration (UCC) market. IDC says the UCC market could reach $33.8bn in worldwide total revenue in 2017, LogMeIn believes the total addressable market opportunity to be more than $25bn of that total
Closing the deal will quicken the cloud provider’s UCC strategy and strengthen LogMeIn’s collaboration portfolio, by bringing together LogMeIn’s offerings such as GoToMeeting, OpenVoice and Join.Me with Jive’s UCC products.
“We believe the combination of Jive’s award-winning voice, video, contact centre and mobile applications with our leading collaboration products, GoToMeeting and join.me, will give LogMeIn one of the best and most 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.”
The deal aims to make communications services easier for customers to use, by bringing the expertise of both businesses together.
“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. “With market-defining brands like GoToMeeting and GoToWebinar, LogMeIn is one of the most recognised and respected names in collaboration – a leader with the reach, scale and resources capable of fuelling Jive’s next chapter of growth and customer-focused innovation.
“They are also a company that shares our vision and philosophy for giving millions of people a better, simpler, friction-free way to communicate and collaborate on their terms.”
Under the terms of the acquisition, LogMeIn is expected to pay $342m in cash for all outstanding equity interests in Jive, dependant on working capital and various adjustments outlined in the agreement. Contingency payments worth up to $15m are also expected to be paid by the cloud provider follow specified milestone achievements, within a two year period following the close of the deal.
The acquisition deal is expected to close during the second quarter of 2018, on the basis certain regulatory and custom closing conditions are met.
This article is from the CBROnline archive: some formatting and images may not be present.
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