Logitech Creates New, Standalone Lifesize
December 29 2015 - 5:00PM
Business Wire
Logitech focuses on growing retail business;
remains Lifesize shareholder
Logitech International (SIX:LOGN) (Nasdaq:LOGI) today announced
that its Lifesize division has separated from the Company to become
Lifesize, Inc., a private entity. Three venture capital firms –
Redpoint Ventures, Sutter Hill Ventures and Meritech Capital
Partners – have invested $17.5 million into Lifesize and join
Logitech as shareholders.
Logitech will hold a 37.5 percent share in the company, based on
shares outstanding immediately following the investment.
The separation of Lifesize is another step in Logitech’s
transformation toward a simpler, faster company. It allows Logitech
to focus on its growing retail business. At the same time, it
provides Lifesize with a better opportunity to realize its full
potential as a videoconferencing software as a service (SaaS)
provider in a market with strong, growing demand. Lifesize will
also benefit from the additional SaaS and videoconferencing market
experience of its new investors.
Logitech will deconsolidate Lifesize from its financials
beginning with the fourth quarter of Fiscal Year 2016. The Company
expects to recognize a non-cash gain of approximately $15
million to $20 million for its fourth quarter of Fiscal
Year 2016. Prior period results will be reported under discontinued
operations.
About Logitech
Logitech designs products that have an everyday place in
people's lives, connecting them to the digital experiences they
care about. Over 30 years ago Logitech started connecting
people through computers, and now it’s designing products that
bring people together through music, gaming, video and
computing. 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). Find Logitech
at www.logitech.com,
the company blog or @Logitech.
This press release contains forward-looking statements within
the meaning of the federal securities laws, including, without
limitation, statements regarding: Logitech’s percentage ownership
in Lifesize, Lifesize’s ability to realize its full potential and
benefit from the experience of its new investors, the demand in the
videoconferencing software as a service market, and the timing and
amount of Logitech’s recognition of a non-cash gain and other
accounting related to Lifesize. The forward-looking statements in
this release involve risks and uncertainties that could cause
Logitech's and Lifesize’s actual results and events to differ
materially from those anticipated in these forward-looking
statements. A discussion of the risks and uncertainties that could
cause actual results and events to differ materially from such
forward-looking statements is included in Logitech's periodic
filings with the Securities and Exchange Commission, including our
Quarterly Report on Form 10-Q for the fiscal quarter ended
September 30, 2015 and our Annual Report on Form 10-K for the
fiscal year ended March 31, 2015, available at www.sec.gov, under
the caption Risk Factors and elsewhere. Logitech does not undertake
any obligation to update any forward-looking statements to reflect
new information or events or circumstances occurring after the date
of this press release.
2015 Logitech, Logicool, Logi and other Logitech marks are owned
by Logitech and may be registered. All other trademarks are the
property of their respective owners. For more information about
Logitech and its products, visit the company’s website at
www.logitech.com.
(LOGIIR)
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version on businesswire.com: http://www.businesswire.com/news/home/20151229005652/en/
Editorial Contacts:Logitech InternationalJoe
GreenhalghVice President, Investor Relations –
USA510-713-4430orKrista ToddVice President, External Communications
– USA510-713-5834orBen StarkieCorporate Communications –
Europe+41-(0) 79-292-3499
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