Software specialist LogMeIn is attracting plenty of attention ahead of its eagerly awaited IPO this week, and looks set to boost its presence within the remote access market. The Woburn, Mass.-based firm provides remote-access services to small businesses, consumers and IT service providers, and is the latest tech firm to take the IPO plunge. LogMeIn is expected to price its $107.2 million IPO Tuesday evening, according to The Wall Street Journal, and at least one analyst has high hopes for the company. "They have got very good brand awareness," said Scott Sweet, managing director of IPOBoutique.com, which monitors the IPO market. "LogMeIn's products should see increased demand as more firms outsource their IT operations and more workers operate outside of centralized offices." The venture-backed company, which competes with Citrix ( CTXS), WebEx, now part of Cisco ( CSCO), and Microsoft ( MSFT), has racked up more than 22 million registered users since 2002. LogMeIn has also been enjoying solid revenue growth at a time when many tech companies are diving for cover. During the first three months of 2009, the firm recorded revenue of $17 million, up from $10 million in the same period last year. Sweet also points out that LogMeIn enjoys the backing of Intel ( INTC), which invested $10 million in December 2007 through its Intel Capital wing. The two firms have also clinched a joint marketing deal, which should help LogMeIn sell its wares into new accounts. "There's a lot of competition in this area, but Intel has chosen LogMeIn," explains Sweet, adding that this will boost LogMeIn's credibility. "You can hardly find a better name out there for that type of thing.
LogMeIn also reached profitability during the first three months of 2009, which Sweet said should bode well for the future. "Their growth, revenue-wise, has always been there, but they seem to have put their R&D in early
in their development as a company and they are reaping the rewards now." The analyst expects the software maker to price its offering at or near the high end of its $14 to $16 original filing range, which follows a string of tech IPOs. Last week, for example, healthcare IT specialist Medidata ( MDSO) priced its IPO at $14 share, raising $88.2 million. This followed IPOs from restaurant reservation Web site OpenTable ( OPEN), and network management software company SolarWinds ( SWI), and hi-res imagery specialist DigitalGlobe ( DGI). In April, Rosetta Stone ( RSI), the language learning software provider, sold 6.25 million shares at $18 a share, above its proposed range of $15 to $17 a share. Rosetta Stone's shares were trading around $27.25 Monday.