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.
