Daily News | Nov 4, 2018 | 2
Incredible Hungarian success: $350 million investment for LogMeIn
Hungarian enterprise LogMeIn is about to assimilate Jive Communications, thus proceeding in their conquest of the UCC market. The purchase will be concluded in the second quarter of this year, according to HWSW.hu.
LogMeIn strengthened its position in the UCC (Unified Communication and Collaborations) market: the Hungarian enterprise announced that it purchases Jive Communications, a Unified Communications-as-a-Service company from Utah. LogMeIn pays $342 million for Jive plus an additional $15 million in cash in case the company manages to reach certain goals in two years. The process is expected to be concluded in the second quarter of 2018.
The headquarters of the assimilated Jive Communications can be found in Orem, Utah, but the enterprise runs additional offices in other regions of the United States, as well as in Canada and South America.
The private company has more than 20,000 customers worldwide. They are usually from the group of larger corporations. According to the plans, current chief manager John Pope will remain in his position in Jive Communications after the purchase and he will be the direct subordinate of the chief manager of LogMeIn. Jive’s exit will be quite strong with this acquisition, as the company gathered around $31 million since its foundation in 2006, but LogMeIn pays ten times this sum for the enterprise.
This money will be needed, of course, as the company expects a 20 percent increase this year, which was the tendency last year as well.
The Hungarian party’s portfolio will be extended significantly by the acquisition: the assimilated company’s products — including audio, video and contactcenter applications — will join LogMeIn’s current applications like GoToMeeting, GoToWebinar, OpenVoice and join.me.
LogMeIn’s performance is already satisfying right now, as it has about 25 million users, 7 million discussions and 15 million hours of conferences per month. The UCC sector’s growing is quite rapid, so it is natural that the Hungarian company intends to participate in this process.
The size of the market was already around $33.8 billion and LogMeIn estimated that about $25 billion of this is exploitable market value.
Jive Communication is not their only purchase recently: LogMeIn bought Citrix GoTo and chatbot developer Nanorep from Israel. The latter one cost $45 million. The Hungarian company has plenty to spend as it multiplied its income by the end of 2017 after the uncertainties following the GoTo integration.