Logitech International (LOGI) announced it has agreed to acquire privately held LifeSize Communications of Austin, Texas for $405 million in cash. LifeSize is a provider of HD video communication solutions, with more than 9,000 video conferencing customers across 80 countries in large enterprises, SMBs and public health care, education and government organizations.
“We expect this acquisition to enable Logitech to extend our leadership in video communication beyond the desktop,” said Gerald P. Quindlen, Logitech president and CEO. “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.”
Logitech and LifeSize plan to pursue existing and new relationships with unified communications, collaboration and VoIP industry partners and competitors to drive the development of an open eco-system for interoperable video communication.
Logitech and LifeSize also expect to further video communication growth by leveraging their combined technology expertise as well as Logitech’s world-class manufacturing and supply chain operations, extensive R&D, expertise in user experience and globally recognized brand, the company said.
Logitech plans for LifeSize to operate as a separate division in Austin under the leadership of Craig Malloy as the LifeSize Communications CEO, reporting to Quindlen. LifeSize expects approximately $90 million in revenue in CY 2009, with CY 2010 revenue expected to grow between 40 percent and 60 percent. Logitech expects the acquisition to be neutral to slightly positive to its operating income (excluding acquisition-related charges) in FY 2011, ending March 31, 2011, and positive thereafter.
The acquisition is subject to customary closing conditions, including antitrust approval, and is expected to close in December.
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