Logitech Bids $405 Million for Video Conferencing Maker
Acquisition delivers mid-range, HD video communications solutions and thousands of new accounts
Logitech International, best known for its extensive, consumer-oriented, portfolio of mice, keyboards and webcams, said it had extended a $405 million cash offer to acquire LifeSize Communications, a privately-held maker of video conferencing equipment.
The acquisition, which is subject to customary regulatory review, is expected to close next month.
LifeSize builds high definition video communications equipment for the mid-range to the low-end of the market, with most of its solutions priced at about $10,000. Last month, the company introduced a $2,500 system called LifeSize Passport aimed at entry-level customers.
The acquisition gives Logitech entrance to LifeSizes roster of 9,000 customers, ranging from small businesses to enterprise accounts in vertical markets such as public healthcare, education and government.
We expect this acquisition to enable Logitech to extend our leadership in video communications beyond the desktop, said Gerald P. Quindlen, Logitech president and chief executive.
LifeSize will operate as a separate division located in Austin, TX and will be run by Craig Malloy, the companys founder and chief executive.
LifeSize was founded on the vision of providing life-like visual communication solutions to change the way the world communicates, Malloy said.
We believe that together with Logitech, we can realize that vision for all enterprises, public and private, and small and medium businesses, he said.
Officials from both companies said that they plan to focus on bringing high quality video communications to the masses.
Together we can make life-like, HD-quality video communication as mainstream and seamless as a telephone, for meeting participants in the boardroom, at their office desk, in a remote-location meeting room, telecommuting from home or on the go with a laptop, said Quindlen.
Our combined proven innovation can accelerate mainstream adoption of video communications by anyone, anywhere, said Malloy.
LifeSize expects to post 2009 revenue of $90 million and anticipates at least 40 percent growth next year.
The acquisition keeps the heat on an already active video conferencing segment that recently saw Cisco Systems Inc. bid $3 billion for Tandberg, a transaction that Tandbergs shareholders failed to affirm, prompting Cisco to extend the deadline for its offer but not yet up its offer.
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