BOSTON, Feb. 08, 2018 (GLOBE NEWSWIRE) — LogMeIn, Inc. (Nasdaq:LOGM) today announced that it has entered into a definitive agreement to acquire Jive Communications, a leading provider of cloud-based phone systems and Unified Communications services and one of the fastest growing players in the Unified Communications-as-a-Service (UCaaS) space. Upon closing, the deal will accelerate LogMeIn’s overall Unified Communications and Collaboration (UCC) strategy and bolster LogMeIn’s popular collaboration portfolio, bringing together LogMeIn’s market-leading offerings like GoToMeeting, GoToWebinar, OpenVoice, and join.me with Jive’s innovative and award-winning UC products. The deal is expected to close during the second quarter of 2018, subject to certain regulatory approvals and customary closing conditions.
With one of the world’s most widely recognized collaboration portfolios, LogMeIn is a leader in web conferencing and web events. The LogMeIn 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 U.S., 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 recognized for its innovative technology, elegant and intuitive user experience, simple, scalable delivery model, and best-in-class 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 center 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 recognized 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, Inc., will be effected through a merger with Jive Communications continuing as a wholly-owned subsidiary of LogMeIn USA, Inc. Under the terms of the merger agreement, LogMeIn is expected to pay $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 $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.
Conference Call Information
LogMeIn will host a conference call to discuss the details of the transaction at 8:30 am ET, today, Thursday, February 8, 2018. Details as follows:
What: Conference call and live webcast to discuss LogMeIn’s planned acquisition of Jive Communications
When: Thursday, February 8, 2018
Time: 8:30 am ET
Live call: Dial In: (888) 394-8218
Dial In (International): (323) 701-0225
Conference ID #: 6578973
Replay Number: (719) 457-0820
In a May 2017 report entitled, “Worldwide Unified Communications and Collaboration Forecast, 2017–2021,” IDC reports that the UCC market will reach $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 $25 billion of that total.
About Jive Communications
Jive provides cloud-based phone systems and Unified Communications services. Jive’s customers include high-growth businesses and public sector institutions needing a scalable platform that is more flexible and cost-effective than their existing legacy systems. Jive’s cloud architecture offers an integrated, seamless experience that provides richer context and creates more efficient connections between co-workers and clients. Jive’s cloud delivery model ensures that each organization always has the latest technology, features, and applications–making Jive the last phone system you’ll ever need.