Citrix in Deal to Merge GoTo Meeting Business With LogMeIn
July 26 2016 - 04:45PM
Dow Jones News
By Liz Hoffman and Dana Cimilluca
Citrix Systems Inc. struck a deal to merge its virtual-meeting
division with LogMeIn Inc., a transaction that would beef up a
business Citrix was already planning to spin off.
The deal is to be structured as a so-called Reverse Morris
Trust, a tax-free transaction that has been popular of late as
companies look to slim down and become more focused.
The deal values LogMeIn at a slight premium to its market value
Tuesday afternoon of $1.7 billion. Fort Lauderdale, Fla.-based
Citrix had already said it would spin off the business, known as
GoTo, in a tax-free deal in the second half of the year.
GoTo's software allows users to connect to business meetings
from various devices, among other functions. It had revenue of
about $600 million in the 12 months ended September. Boston-based
LogMeIn also makes software that allows users to collaborate
remotely. Its annual revenue, which comes mostly from
subscriptions, has roughly doubled since 2012 and came in at $272
million last year.
Write to Liz Hoffman at liz.hoffman@wsj.com and Dana Cimilluca
at dana.cimilluca@wsj.com
(END) Dow Jones Newswires
July 26, 2016 16:30 ET (20:30 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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