OREM — The company that operates the popular GoToMeeting digital conferencing service announced plans Thursday to acquire Orem-based Jive Communications in a deal valued at $357 million.
Jive was founded in 2006 and has carved out a successful niche in the voice-over-internet and unified communications sector, acquiring 20,000 customers, building a workforce of 600 (mostly in Utah) and earning $80 million last year.
LogMeIn, the parent company to cloud-based services that include GoToMeeting, GoToWebinar, OpenVoice and join.me will pay $342 million to wholly acquire Jive and spend another $15 million over two years in contingency/employee retention costs.
LogMeIn representatives said in a statement that acquiring Jive's state-of-the-art voice and mobile applications meshes well with the company's current suite of digital services.
“Jive’s success in UCaaS is a testament to its modern cloud-based platform, its deliberate focus on customer satisfaction, and its renowned culture of innovation," said LogMeIn President and CEO Bill Wagner. "We believe the combination of Jive’s award-winning voice, video, contact center and mobile applications with our leading collaboration products, GoToMeeting and join.me, will give LogMeIn one of the best and most comprehensive UCC offerings in the market.
“The result is a deal that will accelerate our overall growth, set a new standard in the UCC market, and provide us with a foundation upon which we’ll build the next generation of LogMeIn’s UCC portfolio.”
In a statement to the Deseret News, a spokeswoman for LogMeIn said the company plans to retain most of the current roster of employees and even grow the staff but that "with most M&A activity, there is always going to be some initial overlap in skill sets and responsibilities — functions and roles that are redundant — and as a result, we anticipate that some roles will change and a small number of roles will be eliminated following the close."
Plans announced by Jive last summer to move into a new Pleasant Grove headquarters, still under construction, are still in place, and LogMeIn reported it will keep current Jive co-founder and CEO John Pope at the helm of the company. The deal is expected to close in about 60 days. In a statement, Pope said the acquisition is a win for both companies.Comment on this story
“With market defining brands like GoToMeeting and GoToWebinar, LogMeIn is one of the most recognized and respected names in collaboration — a leader with the reach, scale and resources capable of fueling Jive’s next chapter of growth and customer-focused innovation," Pope said. "They are also a company that shares our vision and philosophy for giving millions of people a better, simpler, friction-free way to communicate and collaborate on their terms.
“It’s a combination that immediately gives both parties the power to deliver significantly more value to our combined customer bases.”
LogMeIn has 25 million users and hosts over 7 million conferences and 900 million conferencing minutes every month.