Confirming recent reports, LogMeIn Inc. today announced that it has inked a definitive agreement to be acquired by Francisco Partners Management and Elliott Management’s Evergreen affiliate for $4.3 billion.

The deal is poised to take LogMeIn off the Nasdaq stock exchange after a more than 11-year run as a publicly traded company.

Shareholders of LogMeIn, which sells cloud services for workplace communications and technical support delivery, are set to receive $86.05 in cash per each share of common stock they own. That’s 25% higher than the company’s trading price on Sept. 18, the day before rumors about a potential acquisition first surfaced.

The deal is expected to close in the middle of 2020 pending the necessary approvals. LogMeIn has a 45-day “go shop” window to see if any other bidders come forward and, should a better offer emerge, the board will have the option to exit the agreement with Francisco Partners and Evergreen.

Founded in 2003, LogMeIn has amassed a sizable portfolio of mostly business-focused cloud services with many millions of users between them. The company’s GoTo family of communications applications enable users to host online meetings, create chat rooms, hold virtual training courses and present webinars. LogMeIn’s RescueAssist is used by enterprise information technology teams to remotely troubleshoot technical issues on workers’ devices.

The company’s most popular offering is LastPass, a password manager that is also one of the few LogMeIn solutions with a consumer version. LastPass had more than 16 million users as of 2018.

From a financial standpoint, LogMeIn’s product portfolio represents a mixed basket of assets for soon-to-owners Francisco Partners Management and Evergreen. Certain LogMeIn products such as LastPass are experiencing rapid growth, with the password manager having raked in 64% more revenue last quarter than a year earlier, but other offerings are on a flatter curve. LogMeIn recorded overall year-over-year sales growth of 2.5% on an adjusted basis for the three months ended Sep. 30. 

“Francisco Partners and Evergreen are committed to addressing the unique needs of both our core and growth assets,” said LogMeIn Chief Executive Officer Bill Wagner. “We believe our partnership with Francisco Partners and Evergreen will help put us in a position to deliver the operational benefits needed to achieve sustained growth over the long term.”

Qatalyst Partners and J.P. Morgan Securities LLC are acting as financial advisors to LogMeIn, while Mizuho Bank Ltd. is the lead financial adviser to Francisco Partners and Evergreen. 

Photo: LogMeIn