Business And Leadership: Logitech plans HD future with US$405m LifeSize buy

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Logitech plans HD future with US$405m LifeSize buy

12.11.2009
Peripherals leader Logitech is to acquire privately held high-definition (HD) enterprise video player LifeSize Communications for US$405m in cash.

Texas-based LifeSize is a global leader in 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 organisations.

“We expect this acquisition to enable Logitech to extend our leadership in video communication beyond the desktop,” said Gerald P. Quindlen, Logitech president and chief executive officer.

“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.”

Further video communication growth expected
Logitech and LifeSize also expect to further video communication growth by leveraging 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.

Logitech plans for LifeSize to operate as a separate division in Austin under the leadership of LifeSize co-founder Craig Malloy as the LifeSize Communications chief executive officer, reporting to Quindlen.

LifeSize expects approximately US$90 million in revenue in 2009, with 2010 revenue expected to grow between 40pc and 60pc.

The acquisition is subject to antitrust approval, and is expected to close in December.

Speeding up mainstream adoption of video communication
“LifeSize was founded on the vision of providing life-like visual-communication solutions to change the way the world communicates,” said Malloy, LifeSize co-founder and chief executive officer.

“We believe that together with Logitech, we can realise that vision for all enterprises – private and public – and small and medium businesses. Our combined proven innovation can accelerate mainstream adoption of video communication by anyone, anywhere.”

Logitech and LifeSize 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.

Article courtesy of siliconrepublic.com