BANGALORE, INDIA: LogMeIn Inc., a leading provider of cloud-based connectivity solutions, has completed the acquisition of the Pachube service and substantially all other assets of Connected Environments Ltd.
Pachube (pronounced “Patch Bay”) is a web-based service for connecting people and devices to the Internet of Things – a network of sensor-enabled devices publishing and sharing data that some predict will exceed 50 billion devices worldwide by the next decade. This acquisition furthers LogMeIn’s investment in highly scalable connectivity and data sharing platforms, and extends its reach beyond computers, smartphones and tablets to potentially all Internet-connectable devices.
“We believe the volume of devices coming online and the amount of data they will generate will dwarf the Internet as we know it today,” said Michael Simon, CEO of LogMeIn. “This investment extends our Gravity platform for scalable, secure connectivity and storage into the universe of smart and embedded devices and the complex systems that the Internet of Things makes possible. The Pachube team has a deep understanding of the technical challenges and opportunities that this phenomenon represents, and we believe they’ve built a service that will change the way people interact with their devices, their environment and each other.”
Pachube service and user community
Pachube is an Internet of Things pioneer. Their service, launched in 2008, offers real-time monitoring and management of any type of connected device. Pachube makes it easy for people to connect their devices and sensors to its service, to publish data, and to receive data and instructions from other devices.
The Pachube service also collects and stores the published datastreams for further analysis and visualization. Using the Pachube service, individuals, developers and businesses can create applications, services and products that leverage the data created by these connected devices. In doing so, Pachube empowers people to share, collaborate and make use of the information generated by the world around them. Currently, Pachube users send more than seven million datapoints to the service each day.
The Internet of things, smart devices
New classes of devices are increasingly becoming Internet-enabled. Energy monitors, home appliances, health monitors, environmental sensors, automotive components – all manner of electronic, sensor-enabled devices are becoming capable of connecting to the Internet.
In a recent Wall Street Journal article, executives from Verizon and Ericsson estimated that the number of Internet-connected devices will reach between 50 and 60 billion by the end of the decade. Moving beyond the challenge of simply connecting to a single device, the Internet of Things envisions that devices and the data exchanged between them will form new complex systems -- better energy management systems, smarter homes, smarter cities. When devices work together and people can make use of data from a collection of diverse datastreams, the result is better control of these complex systems and a better understanding of IT, physical and even environmental systems.
“We are very excited to join LogMeIn, an ideal partner for Pachube. Together, we are in a strong position to bring our shared vision for the Internet of Things to fruition,” said Pachube’s founder, Usman Haque.
“We believe uniting the Pachube and LogMeIn teams, who have an expertise in building both large-scale user communities and the secure platforms to support them, will accelerate the growth of Pachube’s global community, introduce Pachube to new people and markets and enable companies to develop products that leverage our service. LogMeIn understands Pachube’s mission and brings the resources, knowledge and experience that will help us deliver our goal of providing the world’s leading open, interoperable platform for the Internet of Things.”
Terms and financial impact
Under the terms of the transaction, LogMeIn acquired Pachube for approximately $15 million in cash, a portion of which is performance and retention based and is expected to be paid over time. In addition to the amortization of the acquisition cost, LogMeIn will absorb approximately $1 million per quarter in ongoing operating costs related to the operation of the Pachube business.