Logitech to acquire LifeSize Communications

MUMBAI, INDIA: Logitech International (SIX: LOGN) (Nasdaq: LOGI), a leader in PC video communication, has agreed to acquire privately held LifeSize Communications of Austin, Texas for $405 million in cash.

LifeSize is a global leader in high definition (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 organizations.

LifeSize’s industry leading HD video conferencing solutions provide superior quality of experience and are flexible, easy to use, install and manage – with unmatched price/performance.

Craig Malloy, Co-founder and Chief Executive Officer, LifeSize, said: “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. We believe that together with Logitech, we can realize 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 was founded on the vision of providing life-like visual-communication solutions to change the way the world communicates.

Gerald P. Quindlen, Logitech, President & CEO, said: “We expect this acquisition to enable Logitech to extend our leadership in video communication beyond the desktop. 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.”

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 recognized brand.

Logitech plans for LifeSize to operate as a separate division in Austin under the leadership of Malloy as the LifeSize Communications CEO, reporting to Quindlen.

LifeSize expects approximately $90 million in revenue in CY 2009, with CY 2010 revenue expected to grow between 40 percent and 60 percent. Logitech expects the acquisition to be neutral to slightly positive to its operating income (excluding acquisition-related charges) in FY 2011, ending March 31, 2011, and positive thereafter.