LogMeIn to go private in $4.3 billion deal

Industry:    2019-12-18

LogMeIn Inc said it will be taken private in a $4.3-billion deal by buyout firm Francisco Partners and the private equity arm of activist hedge fund Elliott Management, more than a decade after the remote desktop tool provider went public.

LogMeIn shareholders will get $86.05 per share in cash, the company said on Tuesday, representing a premium of more than 25% to its closing price on Sept. 18, the last trading day before a media report on the sale.

The company’s shares were up 4.1% at $85.79 in morning trading.

The agreement includes a customary 45-day “go-shop” period, which permits LogMeIn to actively look for alternate acquisition proposals.

Elliott, one of the world’s busiest activist investors, has partnered with Francisco earlier in 2016 to buy Dell’s software unit for $2 billion. Francisco is known to focus exclusively on investments in technology companies.

The LogMeIn deal is expected to close in mid-2020.

Qatalyst Partners and JP Morgan Securities LLC are acting as financial advisers to LogMeIn, and Latham & Watkins LLP as its legal adviser.

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