Logitech to buy video specialist LifeSize

Stuart Corner
Wednesday, 11 November 2009 09:29

IT Industry - Deals

Logitech and LifeSize say they plan to "pursue existing and new relationships with unified communications, collaboration and VoIP industry partners and competitors to drive the development of an open eco-system for interoperable video communication," and to "leverage their combined technology expertise as well as Logitech's world-class manufacturing and supply chain operations, extensive R&D, expertise in user experience and globally recognised brand."

They will face an uphill battle to wrest market share from the dominant players. Recently published research from Wainhouse Research shows the market for "group videoconferencing systems [including] set top devices, rack mount systems, split systems, and executive 'all in one systems," including telepresence but excluding videophones and PC software solutions as being heavily dominated by Tandberg and Polycom.

Wainhouse Research ranks Polycom as the global leader for total installed group systems as of July 2009, with an estimated 41 percent market share and the leading supplier for global video conferencing systems shipped during first half 2009, with 35 percent market share. Tandberg was not far behind with a 26 percent share of the installed base and 31 percent of H1 2009 shipments. Cisco rated one percent of shipments and did not rank at all on the installed base. LifeSize's market share was not indicated

Logitech, headquartered in Switzerland, plans for LifeSize to operate as a separate division from its current base in Austin Texas under the leadership of current founder and CEO, Craig Malloy. LifeSize expects approximately $90 million in revenue in CY 2009, with CY 2010 revenue expected to grow between 40 percent and 60 percent. The acquisition is expected to close in December.

LifeSize has about 300 employees around the world and some 9000 customers spread across large enterprises, small-to-medium businesses and public healthcare, education and government organisations. Logitech has 8000 employees and revenues of $US2.2b. Its products span the gamut of interface devices for PCs.