LogMeIn to Buy Jive For $342M+, Boost Business Communications Tools
LogMeIn is getting more aggressive in the business communications market, inking a deal to acquire Jive Communications for at least $342 million in cash.
Boston-based LogMeIn (NASDAQ: LOGM) said it could pay an additional $15 million in cash if Jive meets certain milestones during the two years following the deal’s closing, expected to happen in the second quarter of this year. Orem, UT-based Jive will operate as a wholly owned subsidiary, with CEO John Pope continuing to run the business and reporting directly to LogMeIn chief executive Bill Wagner (pictured above). (Jive Communications is not to be confused with Jive Software, a business collaboration toolmaker acquired last year by Aurea for $462 million.)
The Jive Communications deal bolsters LogMeIn’s position in the competitive sector of companies helping shift businesses’ communication tools to the cloud and unifying the functions in one software platform. Other players include Fuze (also based in Boston), RingCentral, ShoreTel, and Mitel, along with products from big companies like Microsoft and Google.
Jive’s products include cloud-based phone systems, so calls can also be made via mobile app, Web browser, or desktop app; video conferencing software; and contact center software. LogMeIn’s communications and collaboration products include cloud-based audio and video conferencing software; webinar software; and employee training software. The company also offers software products for remote computer access and troubleshooting, cybersecurity and password management, and connected device infrastructure.
LogMeIn, which was founded in 2003 and went public in 2009, has been an active dealmaker. Jive is one of its larger acquisitions, but not the biggest—it bought rival Citrix’s business collaboration tools for $1.8 billion in 2016. Other notable LogMeIn purchases include the $110 million-plus acquisition of password management service LastPass in 2015 and last year’s $45 million acquisition of Israeli artificial intelligence software firm Nanorep.
Jive got started in 2006 and raised at least $32.3 million from investors, according to SEC filings. The company said it has more than 20,000 customers and approximately 600 employees located in the U.S., Canada, and Latin America. LogMeIn anticipates that a “small number” of Jive jobs will be eliminated after the transaction closes, according to a statement e-mailed to Xconomy.