Boston-based public company LogMeIn has entered into a definitive agreement to acquire Jive Communications, a private provider of cloud-based phone systems based in Utah.
LogMeIn is expected to pay $342 million in cash upon close, plus up to $15 million upon the achievement of specified milestones over the two-year period following the closing of the transaction. The deal is expected to close in the second quarter of 2018.
Upon closing, the deal is expected to bolster LogMeIn’s remote collaboration and connectivity tools, including services such as GoToMeeting and GoToWebinar, with the addition of Jive's voice-over-internet and unified communications expertise.
Headquartered in Orem, Utah, Jive Communications has offices in the U.S., Canada and Latin America and raised its latest $3.3 million venture round in 2016, according to Crunchbase. Following the transaction, the CEO of Jive Communications will continue to run the Jive Communications business, reporting directly to LogMeIn CEO Bill Wagner.
LogMeIn's last acquisition goes back to the summer of 2017, when the company bought an Israeli startup that makes a self-service chatbot and virtual assistant software, Nanorep, for $45 million and up to an additional $5 million.
The acquisition of Nanorep followed closely LogMeIn's merger with Citrix’s GoTo business for $1.8 billion, which led LogMeIn to become one of the world’s top 10 software-as-a-service companies in terms of revenue.
In February 2017, Wagner told BostInno that time is key in the markets in which they compete, and the whole "whether to build or buy" comes down to how fast the company can get to market. Speaking of M&A deals, Wagner said he only pursues acquisitions “where I feel like we can make the product and business model better.”
"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," Wagner said 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."
