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November 11, 2009
Logitech Pays $405M For HD Video Conferencing's LifeSize
PC peripherals maker Logitech has acquired high def video conferencing hardware maker LifeSize, paying $405M (€270M) in cash for LifeSize. Lifesize is one of the leaders in the movement to make video conferencing a commodity. Lifesize is the world's third-largest maker of videoconferencing equipment.
Today, you see two extremes - video conferencing that you see on Skype for free and them multi-million dollar packages sold to corporations for their board rooms.
Six-year-old LifeSize, has 200 workers in Austin, TX and 300 worldwide.
LifeSize has raised about $81M (€56M) in venture backing. Lifesize's backers include Austin Ventures, Lehman Brothers Venture Partners, < a href="http://www.nvp.com">Norwest Venture Partners, Pinnacle Ventures, Redpoint Ventures, and Sutter Hill Ventures.
Logitech said LifeSize is expecting revenues of approximately $90M (€60M) in CY2009 with with growth of 40 to 60% in 2010. To date, LifeSize has sold about 30K conferencing systems to 9K customers. The cost of Lifesize ranges from $6000 to $9000 but a feature is that you don't need a systems integration firm to set it up.
The new firm's biggest competitors are Polycom and Tandberg. Both are larger and more established companies. And interestingly, Cisco Systems offered $3B (€2B) to buy Tandberg last month but that deal has been on the edge.
Posted on November 11, 2009 11:56 PM | Posted to Buyout | Interactive TV | M&A | Peripherals | Venture Capital | Permalink
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