Logitech to buy video specialist LifeSize

Stuart Corner
Wednesday, 11 November 2009 09:29

IT Industry - Deals

PC peripheral specialist Logitech International is to acquire privately held videoconferencing specialist, LifeSize Communications for $US405 million in cash in a move designed to take high definition videoconferencing and video communications to the small enterprise and consumer markets.

LifeSize claims to be "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."

Logitech president and CEO, Gerald P Quindlen, said: "We expect this acquisition to enable Logitech to extend our leadership in video communication beyond the desktop. 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."

The move comes as Cisco's $3b bid for LifeSize's much larger rival, Tandberg , has stalled. With just one week to go until the already extended deadline of Cisco's offer expires, Cisco has revealed that it has acceptances from Tandberg shareholders representing less than 10 percent of total equity. Tandberg shareholders have dismissed Cisco's offer as being too low. Cisco has responded saying the offer represents "a very good price for Tandberg shareholders."

With Logitech's brand ranking and presence in the PC market the acquisition of LifeSize could do much to take high quality video from the boardroom to the living room, the stated aim of the two companies. In a joint statement, Quindlen and LifeSize's Craig Molloy said:

"Our two companies share a vision for the role of video in business and professional communication, believing that anywhere there is voice there should be video. That means offering a life-like, HD-video communication experience that is as seamless and mainstream as a telephone call...Logitech, the world leader in webcams and a pioneer in the development of PC-based video calling, is a natural fit for LifeSize – from a business, innovation and cultural perspective. With Logitech's backing, LifeSize will be able to scale more effectively to deliver technology solutions to more customers and partners around the world. And by closely collaborating on innovation, we believe that we can accelerate the realization of our vision."

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