Private equity, Content

LogMeIn Acquisition Rumor Heats Up Again: Private Equity Buyout?

LogMeIn could be acquired for roughly $4 billion by private equity firm Francisco Partners Management, working with activist investor Elliott Management, according to Bloomberg. LogMeIn's stock ($LOGM) rose about 7 percent Wednesday amid the buyout rumors.

Updated December 17, 2019: LogMeIn Confirms $4.3 billion buyout. More bids coming?

The M&A discussions are in the advanced stages but no final decision has been made,  the report added.

LogMeIn’s cloud-based software portfolio spans unified communications and collaboration, identity and access management, and customer engagement and support solutions. The company acquired Citrix Systems’ GoTo business in a $1.8 billion deal back in 2016.

For LogMeIn’s third quarter of 2019:

  • Revenue was $316.9 million, up 2.5 percent compared to Q3 of 2018.
  • Net income was $5.1 million, down from $12.7 million compared to Q3 2018.

The company's market capitalization is roughly $3.9 billion as of December 11, 2019 (after the U.S. market close), according to Yahoo Finance.

Rumors about LogMeIn potentially being acquired have surfaced multiple times this year.

Private Equity: Francisco Partners Expertise

Francisco Partners has considerable experience in the IT management, secure access, communications and cybersecurity software market. The private equity firm's current investments include BeyondTrust; Quest Software and that business's One Identity unit; SonicWall and WatchGuard.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.