LogMeIn takes aim at UCC market with $342 million acquisition
LogMeIn has announced that it has entered into a definitive agreement to acquire Jive Communications, a provider of cloud-based phone systems and unified communications services.
LogMeIn says the deal is set to accelerate their overall Unified Communications and Collaboration (UCC) strategy and bolster their collaboration portfolio by combining LogMeIn's current offerings - including GoToMeeting, GoToWebinar, OpenVoice, and join.me - with Jive's portfolio of UC products.
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, as well as an additional USD$15 million in cash contingency payments.
The deal is expected to close during the second quarter of 2018, subject to certain regulatory approvals and customary closing conditions.
LogMeIn president and CEO Bill Wagner says his company is particularly excited about what Jive brings to the table in terms of its capacity as a Unified-Communications-as-a-Service (UCaaS) provider.
“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,” Wagner says.
“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.
“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.
US-based Jive Communications is a privately held, venture-backed company with over 20,000 customers worldwide and offices in the U.S., Canada and Latin America.
LogMeIn says Jive has a growth rate exceeding its peers in the UCaaS market, and an industry best net promoter score (NPS).
Jive CEO John Pope says his company is excited to now be working with LogMeIn.
“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,” he says.
“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.
Following the close of the transaction, Pope is expected to continue to run the Jive Communications business, reporting directly to Wagner.