Logitech International (SIX: LOGN) (Nasdaq: LOGI), a leader in PC video communication, today announced that it has agreed to acquire privately held LifeSize Communications of Austin, Texas for $405 million in cash. LifeSize is a global leader in high definition (HD) video communication solutions, with more than 9,000 video conferencing customers across 80 countries in large enterprises, small-to-medium businesses (SMBs) and public healthcare, education and government organizations.
LifeSize’s industry leading HD video conferencing solutions provide superior quality of experience and are flexible, easy to use, install and manage – with unmatched price/performance.
“We expect this acquisition to enable Logitech to extend our leadership in video communication beyond the desktop,” said Gerald P. Quindlen, Logitech president and chief executive officer. “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 chief executive officer. “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 and LifeSize 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.
Logitech and LifeSize also expect to further video communication growth by leveraging their combined technology expertise as well as Logitech’s world-class manufacturing and supply chain operations, extensive R&D, expertise in user experience and globally recognized brand.
Logitech plans for LifeSize to operate as a separate division in Austin under the leadership of Mr. Malloy as the LifeSize Communications chief executive officer, reporting to Mr. Quindlen. LifeSize expects approximately $90 million in revenue in CY 2009, with CY 2010 revenue expected to grow between 40 percent and 60 percent. Logitech expects the acquisition to be neutral to slightly positive to its operating income (excluding acquisition-related charges) in FY 2011, ending March 31, 2011, and positive thereafter.
The acquisition is subject to customary closing conditions, including antitrust approval, and is expected to close in December.
Logitech will hold its Analyst and Investor Day in New York City on Wednesday, Nov. 11, 2009, from 9:00 a.m. to 1:00 p.m. Eastern Standard Time. A discussion of this acquisition will be included in the briefing. A live webcast of the briefing, along with presentation slides, will be available on the Logitech corporate Web site at http://ir.logitech.com.
Founded in 1981, Logitech International is a Swiss public company listed on the SIX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI).
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This press release contains forward-looking statements, including among others, statements regarding Logitech’s ability as a result of the acquisition to extend its leadership in video communication beyond the desktop, to make HD-quality video communication mainstream and seamless, to accelerate mainstream adoption of video communication, expected revenue performance of LifeSize for CY 2009 and CY 2010, expected impact of the acquisition on Logitech’s operating income, and the timeframe during which the acquisition is expected to close. The forward-looking statements in this release involve risks and uncertainties that could cause Logitech’s or LifeSize’s actual results to differ materially from that anticipated in these forward-looking statements. Factors that could cause actual results to differ materially include: obtaining regulatory approval of the acquisition, the retention of employees of LifeSize and the ability of Logitech to successfully integrate LifeSize’s market opportunities, technology, personnel and operations and to achieve anticipated results; and the ability of LifeSize to achieve revenue expectations, which are dependent on factors such as the integration with Logitech, competition in the video conferencing and communications industry, including from companies with greater resources, installed base and name recognition, and the rate of adoption of video communications in enterprises; as well as those additional factors set forth in Logitech’s periodic filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2009, and our subsequent Quarterly Reports on Form 10-Q available at www.sec.gov . Logitech does not undertake to update any forward-looking statements.
Logitech, the Logitech logo, and other Logitech marks are registered in Switzerland and other countries. All other trademarks are the property of their respective owners. For more information about Logitech and its products, visit the company’s Web site at www.logitech.com .
(LOGI – IR)