LogMeIn says it will acquire enterprise VoIP company Jive Communications for $342M in cash plus up to $15M based on milestones over the next two years
Yet more consolidation in the enterprise collaboration software market. Today LogMeIn, the company that offers conferencing services …
Context & Ripple Effects
This is the third act of LogMeIn's roll-up strategy. The company already ran this exact playbook on LastPass — $110M cash plus $15M in milestone-contingent payments — and merged with Citrix's GoTo business in a $1.8B tax-free deal that put Bill Wagner in charge and turned LogMeIn into a conferencing heavyweight.
Jive Communications fills the missing layer: voice. With Mitel's $1.96B Polycom buy showing where the market is heading, LogMeIn is assembling conferencing plus VoIP into one enterprise communications suite rather than selling meetings alone.
First-order effects
- LogMeIn gains an owned VoIP platform it can bundle with its GoToMeeting-era conferencing base, while Jive's shareholders receive $342M in cash with up to $15M more tied to two-year milestones.
Second-order effects
- Rivals like Mitel now face a competitor selling voice and meetings as one contract, pushing the rest of the enterprise communications field toward similar bundling or further acquisitions.
Third-order effects
- The consolidation logic cuts both ways: within two years LogMeIn itself agreed to be taken private by Francisco Partners and Elliott Management at roughly $4.3B, suggesting that serial acquirers in enterprise communications ultimately become targets as standalone vendors run out.
The trend: Enterprise communications is consolidating into bundled suites through repeated M&A, with today's acquirers — LogMeIn included — eventually absorbed by larger buyers or private equity.