LogMeIn stated that it has accepted to be auctioned for $4.3 billion to associates of Francisco Partners and Evergreen Coast Capital Corporation, the individual equity subsidiary of Elliott Management Corporation.
The acquisition price comes out to $86.05 per share in an all-cash agreement.
The firm had a 52-week high of $96.87 per share and a low of $62.02.
The buying price describes a 25% premium on the closing share price on September 18th, which the firm records were the day media reports started to leak that the company was up for sale.
In The Words of the President
Bill Wagner, president, and CEO at LogMeIn, stated in a statement that the cost shows the high value of the company and will provide stockholders a meaningful return.
As you would assume, he was also was positive that the partnership with Francisco and Evergreen would benefit the company moving forward.
He further said that he believes that the partnership with Francisco Partners and Evergreen’s support will set them in a place to deliver the operational advantages needed to achieve supported growth over a long time.
As for the individual equity firms, they are receiving a wide portfolio of products, including united communications and collaboration (UCC).
The Game of Acquisitions
LogMeIn purchased Jive Communications for $357 million in 2018 to give it broader penetration in the united communications market.
It is the most popular product that is GoToMeeting, which has had to contend with the likes of Zoom, WebEx, BlueJean, Google Hangouts, and others in a packed video conferencing space.
The company acquired GoToMeeting from Citrix in 2016 for around $1.8 billion.
It has a diversity of other products involving remote access tools.
It allocated $30 million in venture financing, according to Crunchbase data, before it went public in 2009.
The deal is assumed to close in mid-2020, but the company does have a 45-day go-shop arrangement, which implies it can seek to find a buyer, who will give a better rate than this one.
If it does not, the deal will be subject to approved regulatory investigation before it concludes next year.
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