Introduction

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).

See Also: Gecko Robotics Raises $40 Million in Funding For Increasing Robot Production 

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.

Conclusion

LogMeIn’s acquisition for $4.3 billion marks a significant shift in the company’s future. The deal reflects the value of LogMeIn’s diverse portfolio, particularly its strengths in unified communications and collaboration tools like GoToMeeting. With backing from Francisco Partners and Evergreen Coast Capital, the company is positioned for long-term growth and operational improvements. The 25% premium over the stock’s previous closing price highlights the market’s confidence in the acquisition. While the deal is set to close in mid-2020, LogMeIn has a 45-day window to explore better offers, after which the agreement will undergo regulatory review before finalization.

FAQs

1. What is the acquisition price for LogMeIn?
LogMeIn has accepted an acquisition price of $4.3 billion, which is $86.05 per share in an all-cash deal.

2. Who is acquiring LogMeIn?
The acquisition is being carried out by Francisco Partners and Evergreen Coast Capital Corporation, the private equity affiliate of Elliott Management Corporation.

3. What does the acquisition mean for LogMeIn shareholders?
Shareholders will receive $86.05 per share, representing a 25% premium over the stock price on September 18th, when the company’s sale was first reported.

4. Why did LogMeIn sell itself?
Bill Wagner, President and CEO of LogMeIn, emphasized that the acquisition price reflects the company’s high value and will provide stockholders with a meaningful return. The deal also allows LogMeIn to grow further with the support of its new partners.

5. Can LogMeIn seek other buyers for a higher price?
Yes, LogMeIn has a 45-day “go-shop” period where it can seek higher offers from other potential buyers.

6. When will the deal close?
The deal is expected to close by mid-2020, but it will undergo regulatory review before finalizing.

7. What products does LogMeIn offer?
LogMeIn offers a wide range of products, including its popular GoToMeeting platform for video conferencing, as well as tools for remote access and unified communications.

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