FREMONT, Calif. & ROMANEL-SUR-MORGES, Switzerland, Nov 10, 2009 (BUSINESS WIRE) -- Logitech International (SIX:LOGN) (Nasdaq:LOGI), a leader in PC video
communication, today announced that it 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.
"We expect this acquisition to enable Logitech to extend our leadership
in video communication beyond the desktop," said Gerald P. Quindlen,
Logitech president and chief executive officer. "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 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 officer. "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."
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.
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 Mr. Malloy as the LifeSize Communications chief
executive officer, reporting to Mr. 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.
The acquisition is subject to customary closing conditions, including
antitrust approval, and is expected to close in December.
Webcast
Logitech will hold its Analyst and Investor Day in New York City on
Wednesday, Nov. 11, 2009, from 9:00 a.m. to 1:00 p.m. Eastern Standard
Time. A discussion of this acquisition will be included in the briefing.
A live webcast of the briefing, along with presentation slides, will be
available on the Logitech corporate Web site at http://ir.logitech.com.
About Logitech
Founded in 1981, Logitech International is a Swiss public company listed
on the SIX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market
(LOGI).
This press release contains forward-looking statements, including among
others, statements regarding Logitech's ability as a result of the
acquisition to extend its leadership in video communication beyond the
desktop, to make HD-quality video communication mainstream and seamless,
to accelerate mainstream adoption of video communication, expected
revenue performance of LifeSize for CY 2009 and CY 2010, expected impact
of the acquisition on Logitech's operating income, and the timeframe
during which the acquisition is expected to close. The forward-looking
statements in this release involve risks and uncertainties that could
cause Logitech's or LifeSize's actual results to differ materially from
that anticipated in these forward-looking statements. Factors that could
cause actual results to differ materially include: obtaining regulatory
approval of the acquisition, the retention of employees of LifeSize and
the ability of Logitech to successfully integrate LifeSize's market
opportunities, technology, personnel and operations and to achieve
anticipated results; and the ability of LifeSize to achieve revenue
expectations, which are dependent on factors such as the integration
with Logitech, competition in the video conferencing and communications
industry, including from companies with greater resources, installed
base and name recognition, and the rate of adoption of video
communications in enterprises; as well as those additional factors set
forth in Logitech's periodic filings with the Securities and Exchange
Commission, including our Annual Report on Form 10-K for the fiscal year
ended March 31, 2009, and our subsequent Quarterly Reports on Form 10-Q
available at www.sec.gov.
Logitech does not undertake to update any forward-looking statements.
Logitech, the Logitech logo, and other Logitech marks are registered in
Switzerland and other countries. All other trademarks are the property
of their respective owners. For more information about Logitech and its
products, visit the company's Web site at www.logitech.com.
(LOGI - IR)
SOURCE: Logitech International
Logitech International
Joe Greenhalgh, 510-713-4430
Vice President, Investor Relations - USA
Nancy Morrison, 510-713-4948
Vice President, Corporate Communications - USA
Ben Starkie, +41-(0)-21-863-5195
Public Relations Manager - Europe
or
LifeSize Communications - USA
Stacy Saxon, 512-623-4250
Dir. Global Corp. Marketing
Copyright Business Wire 2009