Private equity descends on LogMeIn with $4.3B acquisition deal
- 18 December, 2019 09:30
Collaboration, identity and access management solutions vendor LogMeIn is set to go private after striking a US$4.3 billion acquisition deal with a consortium of private equity players.
The publicly-listed company revealed on 17 December it entered into a definitive agreement to be acquired by affiliates of technology-focused private equity firm Francisco Partners, including Evergreen Coast Capital Corporation, the private equity affiliate of Elliott Management Corporation.
With the deal worth US$86.05 per share, the all-cash transaction values LogMeIn at an aggregate equity valuation of approximately US$4.3 billion.
According to LogMeIn president and CEO Bill Wagner, the deal will put the company in a position to deliver the “operational benefits needed to achieve sustained growth over the long term”.
“This transaction acknowledges the significant value of LogMeIn and provides our stockholders with a meaningful and certain cash offer at a compelling premium,” Wagner said. “Together, Francisco Partners and Evergreen are committed to addressing the unique needs of both our core and growth assets.”
From the perspective of Andrew Kowal, senior partner at Francisco Partners, LogMeIn possesses a “compelling product portfolio and leadership in the unified communications and collaboration, identity, and digital engagement markets”.
“We look forward to working with Bill [Wagner] and the leadership team at LogMeIn to accelerate growth and product investment organically and inorganically,” Kowal said.
Francisco Partners co-founder and CEO Dipanjan “DJ” Deb said the deal and subsequent partnership between the private equity buyers and LogMeIn will help it achieve its long-term strategic vision.
Elliott partner Jesse Cohn and portfolio manager Jason Genrich said they look forward to being involved in the “next phase of growth and value creation for LogMeIn as a private company”.
The transaction is expected to close in mid-2020, subject to the usual closing conditions, including stockholder and regulatory approvals.