In the event that LogMeIn does not receive a superior offer, the business will be bought by Evergreen Coast Capital and Francisco Partners in a deal worth $4.3bn.
LogMeIn, a US-based SaaS business with a significant presence in Dublin, has entered into a definitive agreement to be acquired in a transaction led by affiliates of Francisco Partners and Evergreen Coast Capital.
With millions of global customers, LogMeIn has developed a cloud-based remote access platform that can be used by IT management, individuals and small businesses. The company also acquired password management software startup LastPass for $110m in 2015.
Earlier this year, LogMeIn announced that it was hiring for 200 new roles in its Dublin office, which is located in the Reflector building in Grand Canal Dock.
This announcement was part of an ambitious plan to create more than 1,000 jobs at its various locations over the next three to five years.
The definitive agreement
Valued at $4.3bn, the acquisition deal will see shareholders receive $86.05 in cash for each share of LogMeIn’s common stock.
The transaction is expected to close in mid-2020, subject to the usual closing conditions, including the receipt of stockholder and regulatory approvals. Qatalyst Partners and JP Morgan Securities are acting as financial advisors to LogMeIn as it undergoes the acquisition process.
The agreement also includes the customary 45-day ‘go-shop’ period, which permits LogMeIn and its advisors to actively solicit alternative acquisition proposals. This means that if the business receives a better proposal, it has the right to terminate the definitive agreement it has already reached.
Co-founder and CEO of Francisco Partners, Dipanjan Deb, said: “This investment builds on the strength of our infrastructure and security software franchise and we are thrilled to partner with the company to achieve its long-term strategic vision.”
Achieving sustained growth over the long term
President and CEO of LogMeIn, Bill Wagner, added: “This transaction acknowledges the significant value of LogMeIn and provides our stockholders with a meaningful and certain cash offer at a compelling premium.
“Together, Francisco Partners and Evergreen are committed to addressing the unique needs of both our core and growth assets. We believe our partnership with Francisco Partners and Evergreen will help put us in a position to deliver the operational benefits needed to achieve sustained growth over the long term.”
Commenting on the agreement, Andrew Kowal, senior partner at Francisco Partners, commended LogMeIn’s product portfolio and its leadership in the markets of unified communications and collaboration, identity and digital engagement markets.
“We look forward to working with Bill and the leadership team at LogMeIn to accelerate growth and product investment organically and inorganically,” Kowal said.