LogMeIn 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 popular collaboration portfolio, bringing together its offerings like GoToMeeting, GoToWebinar, OpenVoice, and join.me with Jive’s UC products.
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The deal is expected to close during the second quarter of 2018, subject to certain regulatory approvals and customary closing conditions.
LogMeIn provides tools for web conferencing and web events. Its widely recognised collaboration portfolio, alone, serves 25 million users, seven million meetings, and over 900 million conferencing minutes every month.
Headquartered in Orem, Utah, Jive Communications is a privately held, venture-backed company with offices in the US, Canada and Latin America.
With over 20,000 customers worldwide, a growth rate exceeding its peers in the high-growth UCaaS market, and an industry best net promoter score (NPS), Jive is widely recognised for its innovative technology, intuitive user experience, simple, scalable delivery model, and customer service.
“Jive’s success in UCaaS is a testament to its modern cloud-based platform, its deliberate focus on customer satisfaction, and its renowned culture of innovation. 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.”
“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 fueling 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,” said John Pope, CEO of Jive Communications.
“It’s a combination that immediately gives both parties the power to deliver significantly more value to our combined customer bases.”
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.
LogMeIn’s acquisition of Jive Communications, through its wholly-owned subsidiary LogMeIn USA, will be effected through a merger with Jive Communications continuing as a wholly-owned subsidiary of LogMeIn USA.
Under the terms of the merger agreement, LogMeIn is expected to pay USD$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 USD$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 USD$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 USD$25 billion of that total.