Private equity firms Francisco Partners and Evergreen Coast Capital are going to buy cloud-based connectivity provider LogMeIn at $ 4.3 billion.
The Boston-based company said that the proposed acquisition by Evergreen, a subsidiary of Francisco and Elliott Management, would help give the company the necessary operational benefits to achieve long-term growth. The offer of $ 86.05 per share represents a 25 percent premium to LogMeIn’s share price on September 18, the last trading day before media reports of a possible sales process.
In a statement, Francisco Partners senior partner Andrew Koval said, “LogMeIn has an attractive product portfolio and leadership in the integrated communications and digital engagement, identity and collaboration markets.” “We look forward to working with the LogMeIn leadership team to accelerate growth and investment in organic and inorganic products.”
Bill Wagner, president and CEO of LogMeIn, said in a statement that the price reflects the company’s high value and will provide significant returns to shareholders. As expected, he was also optimistic that a partnership with Francisco and Evergreen would help the company grow.
The company was founded in 2003 and has been listed on the Nasdaq Stock Exchange since July 2009. LogMeIn has made eight acquisitions in its 16-year history, the latest of which was purchased by host VoIP and unified communications provider HAQ Communications. In April 2018 for $ 357 million.
“This investment builds on the strength of our security software infrastructure and franchise, and we are happy to partner with the company to achieve our long-term strategic vision,” DePunjan “DJ” Deb, CEO of Francisco Partners. This is a statement.
Francisco has a position with several communications and security companies, including Beyondrist, Metaswitch, Sectigo, Sonicwell and Watchguard. The private equity firm has invested more than $ 15 billion since its founding 20 years ago and has invested in more than 275 technology companies.
