First ABE | February 11, 2018
LogMeIn buys Jive Communications
LogMeIn, Inc. (Nasdaq:LOGM) today announced that it has entered into a definitive agreement to acquire Jive Communications, a leading provider of cloud-based phone systems and Unified Communications services and one of the fastest growing players in the Unified Communications-as-a-Service (UCaaS) space. LogMeIn (“Log Me In”) the company that offers conferencing services like GoToMeeting and join.me as well other online services to businesses, announced that it would acquire Jive Communications for $342 million in cash. The deal also includes up to $15 million based on reaching specific milestones.
This announcement underscores how the telecom market continues to see a lot of consolidation. This is a solid offer for Jive Communications, a Utah-based startup that had raised only around $31 million since it was founded in 2006.
The deal will add a suite of unified communications services that will complement and expand on LogMeIn’s existing collaboration products. Jive has 20,000 customers globally, LogMeIn said. Its primary focus is on VoIP for enterprises, and specifically hosted VoIP. In the enterprise market the big shift has been from legacy phone services to VoIP so players like Jive are making a lot of inroads as a result. Other competitors to Jive include services like UberConference, Zoom and WebEx.
“Jive’s success in UCaaS is a testament to its modern cloud-based platform, its deliberate focus on customer satisfaction, and its renowned culture of innovation. We believe the combination of Jive’s award-winning voice, video, contact center and mobile applications with our leading collaboration products, GoToMeeting and join.me, will give LogMeIn one of the best and most comprehensive UCC offerings in the market,” said Bill Wagner, President and CEO of LogMeIn, in a statement. “The result is a deal that will accelerate our overall growth, set a new standard in the UCC market, and provide us with a foundation upon which we’ll build the next generation of LogMeIn’s UCC portfolio.”
This deal will give Jive a lot more scale to grow its business. LogMeIn is significantly bigger in terms of market footprint with 25 million users, clocking seven million meetings, and over 900 million conferencing minutes each month.
The deal is expected to close in Q2 of this year.
LogMeIn has been looking for more ways to expand the types of services that it’s providing to its existing user base, as a way to expand its overall revenues. Last summer, the company acquired an Israeli startup called Nanorep, which makes chatbots and other AI-based tools, for about $50 million.