LogMeIn Buyout Completed; IT Management Provider Goes Private
Private equity firms Francisco Partners and Evergreen Coast Capital have completed the LogMeIn acquisition for roughly $4.3 billion, the companies have disclosed.
No doubt, LogMeIn’s cloud and IT management software platforms are well-known. Key brands include LastPass, GoToConnect, GoToMeeting, GoToMyPC, Rescue and its namesake LogMeIn remote access and remote management products.
Still, LogMeIn has faced competitive pressures on all fronts in recent years, and occasional price increases have alienated some partners. Seeking alternatives, some MSPs embraced ConnectWise Control, SplashTop, and TeamViewer, among other options, in recent years.
Amid that reality, LogMeIn cut about 8 percent of its workforce — or roughly 300 employees — in February 2020.
LogMeIn Financial Performance
Despite some of the business challenges, the overall LogMeIn business was healthy — though under pressure — around the time the coronavirus pandemic took hold in the United States. Indeed:
- Revenue was $322.4 million in Q1 2020, up 5 percent from Q1 of 2019.
- GAAP net loss was $11.3 million, compared to GAAP net income of $59.2 million in Q1 of 2019.
- EBITDA was $55.1 million. down from $68.7 million in Q1 of 2019.