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Logitech To Buy LifeSize

11/11/2009 09:20:36 AM Eastern

Fremont, Calif. - Logitech has agreed to acquire privately held LifeSize Communications, a high-definition video communication solutions provider, for $405 million in cash.

The Austin, Texas-based Lifesize provides video conferencing services across 80 countries to large enterprises, small to medium businesses and public health care, education and government organizations.

Logitech said the two companies 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."

"We expect this acquisition to enable Logitech to extend our leadership in video communication beyond the desktop," said Gerald Quindlen, Logitech's president/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."

"LifeSize was founded on the vision of providing life-like visual-communication solutions to change the way the world communicates," said Craig Malloy, LifeSize co-founder and CEO. "We believe that together with Logitech, we can realize that vision for all enterprises - private and public - and small and medium businesses. Our combined proven innovation can accelerate mainstream adoption of video communication by anyone, anywhere."

Logitech said LifeSize will operate as a separate division in Austin with Malloy continuing as CEO, reporting to Quindlen.

LifeSize projects revenue of about $90 million in calendar year 2009.

Logitech expects the acquisition to be neutral to slightly positive to its operating income (excluding acquisition-related charges) in fiscal 2011, ended March 31, 2011, and positive thereafter.

The acquisition, subject to customary closing conditions, is expected to close in December.

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