- LogMeIn, a leading provider of cloud-based connectivity announced it entered a definitive agreement to be acquired for $4.3 billion. These are the details.
LogMeIn, Inc. — a leading provider of cloud-based connectivity — announced it has entered a definitive agreement to be acquired in a transaction led by affiliates of Francisco Partners and including Evergreen Coast Capital Corporation for $86.05 per share in cash. This all-cash transaction values LogMeIn at an aggregate equity value of approximately $4.3 billion.
What does LogMeIn do? LogMeIn simplifies how people connect with each other and the world around them in order to drive meaningful interactions, deepen relationships, and create better outcomes for individuals and businesses. The company is a market leader in unified communication and collaboration, identity and access management, and customer engagement and support solutions. And LogMeIn has millions of customers spanning virtually every country across the globe.
“This transaction acknowledges the significant value of LogMeIn and provides our stockholders with a meaningful and certain cash offer at a compelling premium,” said LogMeIn president & chief executive officer William Wagner. “Together, Francisco Partners and Evergreen are committed to addressing the unique needs of both our core and growth assets. 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.”
As part of the agreement, LogMeIn shareholders will receive $86.05 in cash for each share of LogMeIn’s common stock they hold. And this consideration represents a premium of approximately 25% to LogMeIn’s unaffected closing stock price on September 18, 2019 — which is the last trading day before a media report was published speculating about a potential sale process. The LogMeIn board of directors approved of the agreement and they recommended that shareholders vote in favor of the transaction.
“LogMeIn has a compelling product portfolio and leadership in the Unified Communications and Collaboration, Identity, and Digital Engagement markets,” added Andrew Kowal, Senior Partner at Francisco Partners. “We look forward to working with Bill and the leadership team at LogMeIn to accelerate growth and product investment organically and inorganically.”
This deal is expected to close in mid-2020 and it is subject to customary closing conditions, including the receipt of stockholder and regulatory approvals.
“This investment builds on the strength of our infrastructure and security software franchise and we are thrilled to partner with the company to achieve its long-term strategic vision,” explained Dipanjan Deb, co-founder and CEO of Francisco Partners.
The definitive agreement for the transaction includes a customary 45-day “go-shop” period that allows LogMeIn and its advisors to actively solicit alternative acquisition proposals and potentially enter negotiations with other parties that make alternative acquisition proposals. And LogMeIn will have the right to terminate the definitive agreement to accept a superior proposal subject to the terms and conditions of the definitive agreement.
“We have deep appreciation for the LogMeIn franchise and leadership team from our long-term involvement in the business,” stated 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.”
There is no assurance that this process will result in a superior proposal. And LogMeIn does not intend to disclose developments with respect to the solicitation process unless and until its board of directors makes a determination requiring further disclosure.
“We are excited to invest in LogMeIn and support its mission to deliver best-in-class software solutions to the modern workforce,” commented Francisco Partners principal Christine Wang.
Qatalyst Partners and J.P. Morgan Securities LLC are acting as financial advisors to LogMeIn, and Latham & Watkins LLP is serving as the company’s legal advisor. And Mizuho Bank, Ltd. is acting as lead financial advisor and Barclays, Deutsche Bank Securities, Jefferies LLC, and RBC Capital Markets are acting as co-financial advisors to Francisco Partners and Evergreen with Paul Hastings LLP, Kirkland & Ellis LLP, and Gibson, Dunn & Crutcher LLP serving as legal advisors. The debt financing for this transaction has been committed by Barclays, RBC Capital Markets, Deutsche Bank Securities, Jefferies Finance LLC, and Mizuho Bank, Ltd.
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