The all-cash deal, which was announced late Tuesday, aims to extend Logitech's reach beyond Web cams into enterprise video conferencing. Austin, Texas-based, privately held LifeSize builds high-definition video-conferencing technology and has more than 9,000 customers around the world.
"We expect this acquisition to enable Logitech to extend our leadership in video communication beyond the desktop," Logitech CEO Gerald Quindlen said in a statement. "Together we can make life-like, HD-quality video communication as mainstream and seamless as a telephone."Investors responded positively to the deal. Logitech shares rose 41 cents, or 2.27%, to $18.48 Tuesday, outpacing the broader advance in tech stocks the saw the Nasdaq rise 1.2%. Logitech plans to run LifeSize as a separate division in Texas, run by its current CEO Craig Malloy. LifeSize expects to bring in revenue of around $90 million during calendar year 2009, a figure that is expected to grow between 40% and 60% next year. Excluding acquisition-related charges, the deal will be neutral to slightly positive to Logitech's operating income in fiscal 2011, according to the Silicon Valley-based firm. The acquisition will be positive thereafter, it added. Logitech, which enjoyed better-than-expected sales during its recent second quarter, is just one of a number of firms ramping up video-conferencing efforts.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV