LogMeIn to be acquired by private equity for US$4.3bn

Cloud-based connectivity vendor and Bold360 owner, LogMeIn, has entered into an agreement to be acquired by affiliates of Francisco Partners, a leading technology-focused global private equity firm.

The all-cash transaction is valued at $86.05 a share, or a total of US$4.3 billion.

One of the major public SaaS companies, and a specialist in unified communication and collaboration, identity and access management, and customer engagement and support solutions, LogMeIn has millions of customers globally. Among its offerings is the Bold360 customer engagement platform, GoToMeeting webinar and collaboration technology, and LastPass identity management solutions.

The deal is expected to close in mid-2020 subject to several closing conditions and has been approved and recommended by company board directors.

“This transaction acknowledges the significant value of LogMeIn and provides our stockholders with a meaningful and certain cash offer at a compelling premium,” said company president and CEO, Bill Wagner.“We believe our partnership with Francisco Partners and Evergreen will help put us in a position to deliver the operational benefits needed to achieve sustained growth over the long term.”

Francisco Partners senior partner, Andrew Kowal, said LogMeIn has a compelling product portfolio and leadership in the unified communications and collaboration, identity and digital engagement markets.

“We look forward to working with Bill and the leadership team at LogMeIn to accelerate growth and product investment organically and inorganically,” he said.

Speculation about a potential LogMeIn sale began in September, and reports that private equity would be the successful bidder erupted a week ago.

“We have deep appreciation for the LogMeIn franchise and leadership team from our long-term involvement in the business,” added Elliott partner, Jesse Cohn, and portfolio manager, Jason Genrich. “We look forward to partnering with Bill and the entire executive leadership team alongside Francisco Partners on the next phase of growth and value creation for LogMeIn as a private company.”

In its most recent Q3 earnings to 30 September 2019, LogMeIn reported revenue of US$317.2 million, up 2.5 per cent year-on-year, and EBITDA of $82.2 million.

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