LogMeIn Inc., a developer of remote connectivity software based in Boston, has acquired Orem-based Jive Communications. Jive develops and markets cloud-based phone systems and unified communications software (UC).
Jive Communications will become a wholly- owned subsidiary of LogMeIn USA Inc. Under the terms of the merger agreement, LogMeIn will pay $342 million at closing for all outstanding equity in Jive. LogMeIn will also pay up to an additional $15 million in cash contingency payments upon the achievement of specified milestones over the two-year period following closing.
John Pope, CEO of Jive, will continue to run the Jive Communications business subsidiary.
The transaction will unite LogMeIn’s collaborations products such as GoToMeeting, GoToWebinar and OpenVoice with Jive’s unified communications products, the company said in a release. The deal is expected to close during the second quarter of 2018, subject to customary regulatory approvals and conditions.
The LogMeIn collaboration portfolio serves 25 million users, 7 million meetings and over 900 million conferencing minutes every month, the company said. Jive brings 20,000 worldwide customers to the combined enterprise.
Founded in 2006, Jive Communications is a privately held, venture-backed company with offices in the U.S., Canada and Latin America. It employs nearly 600 throughout its operations.
“Jive’s success in UCaaS (unified communications as a service) is a testament to its modern cloud-based platform, its deliberate focus on customer satisfaction and its renowned culture of innovation,” said Bill Wagner, president and CEO of LogMeIn. “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 UC offerings in the market. The result is a deal that will accelerate our overall growth, set a new standard in the UC market, and provide us with a foundation upon which we’ll build the next generation of LogMeIn’s UC portfolio.”
“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,” said Pope. “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.”