Logitech buys LifeSize for $405 million
LifeSize video conferencing company will be acquired for $405 million, Logitech has confirmed.
The purchase gives Logitech, known for its consumer webcams, the tools to take on bigger, corporate players in the market.
"We expect this acquisition to enable Logitech to extend our leadership in video communication beyond the desktop," said Gerald Quindlen, Logitech's president and chief executive, in a statement.
"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."
LifeSize introduced relatively low cost 1080p solutions to the market in 2008 and recently demoed to IT PRO an entry-level system that supported Skype.
"LifeSize was founded on the vision of providing life-like visual-communication solutions to change the way the world communicates," said Craig Malloy, LifeSize co-founder and chief executive, in a statement.
"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."
LifeSize will continue to be based in Austin, Texas, and will now operate as a separate division of Logitech. LifeSize said it expected approximately $90 million (54.01 million) in revenue in 2009, with 2010 revenue expected to grow between 40 60 per cent.
The move denotes further consolidation in the video conferencing market, following Cisco's purchase of Norwegian company Tandberg for $3billion in October 2009.
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