Lifesize Doubles Down on Cloud; Spin Off from Logitech

Jan 27, 2016

Frost & Sullivan | Roopam Jain

Corporate spinoffs can be challenging often entailing a long complex process.  Craig Malloy, Lifesize CEO, states about recent spinoff announcement from parent company Logitech, “this is the culmination of two years of hard work reimagining and reinventing our business and nearly a year of working through the transaction”. Its all for a good reason. According to a Penn State study, over a 25-year period, spinoff companies outperformed both their industry peers and the S&P 500 by about 10 percentage points per year over the three years after being spun off.

As we view it, the spinoff will unlock Lifesize’s true potential as a cloud collaboration provider in a market that’s growing like gangbusters. To begin with, there were not many synergies between Lifesize and Logitech. After the acquisition the two remained mostly disjointed from a product development as well as sales and marketing perspective. Over the last few years, as Lifesize moved fast to seize opportunities in the cloud delivery model, the misfit between its B2B SaaS business and Logitech’s retail hardware business became even more glaring.