Lockdown measures have made web conferencing the new normal. More companies have shifted their operations to work-from-home models and this is set to propel the global web conferencing market. In fact, a report released by P&S Intelligence reveals that at a compound annual growth rate of 39.3% between 2020 and 2030, the sector is set to grow to $78.5 billion by 2030, from $2.1 billion in 2019.
At the end of 2019, Francisco Partners and Evergreen Coast Capital, the private equity affiliate of Elliott Management Corporation, announced their acquisition of LogMeIn, a leading cloud services provider for the work-from-anywhere economy. The $4.3 billion deal came out to $86.05 per share in an all-cash deal.
Before the deal closed, LogMeIn exercised its 45-day go-shop provision, which allowed the firm to look for a buyer with a better price than the one from the private equity firm. The go-shop period expired on January 31, 2020, with no other offers. On August 31, the private equity firms announced the deal was now complete, after receiving approval from LogMeIn stockholders on March 12, 2020.
Andrew Kowal, a Senior Partner at Francisco Partners, said, “We look forward to working with Bill and the leadership team at LogMeIn to accelerate growth and product investment organically and inorganically,” citing that the company, “has a compelling product portfolio and leadership in the unified communications and collaboration, identity, and digital engagement markets.”
With the acquisition, the firms are getting a broad portfolio of products, including unified communications and collaboration. LogMeIn purchased Jive Communications for $357 million in 2018 to further its offerings in the unified communications market.
Founded in 2003, LogMeIn’s well-known products include LastPass, the password management software, and GoToMeeting, which competes with Zoom, WebEx, BlueJeans, Google Hangouts, and others in the now-crowded video conferencing space. LogMeIn bought GoToMeeting from Citrix in 2016 for $1.8 billion and startup LastPass for $110 million in 2015. LogMeIn's list of offerings includes GoToMyPC, Rescue, and its remote access and remote management products. As this market continues to grow, remote workplace solutions will continue to be in demand for consumers and investors alike.