What Recession? SaaS Startup Prepares For IPO7:14 PM EST Mon. Jun. 29, 2009
LogMeIn, which rose to prominence as a startup in the remote access space, is preparing to take its game to the next level on Tuesday with a $107 million IPO. LogMeIn expects the 6.7 million share offering to be priced at between $14 and $16 per share.
LogMeIn, based in Woburn, Mass., launched in 2003 and soon gained a following of loyal SMB customers on the strength of its core LogMeIn Free offering. Since then, LogMeIn -- formerly known as 3am Labs -- has expanded its scope to support, virtual private network, and backup applications. The company has also brought remote access capabilities to smartphones such as the iPhone and Blackberry Storm.
In 2006, LogMeIn began offering an Instant Shredding service which includes a "homing beacon" that's installed on a notebook PC and allows it to be tracked and identified and tracked wherever it goes, and has been praised by law enforcement agencies. When a stolen notebook accesses the Internet, the service triggers remote encryption or deletion of data. Apple recently began offering a similar service to iPhone 3G S owners with subscriptions to its MobileMe service.
In December 2007, Intel agreed to acquire roughly 5 percent of LogMeIn for $10 million, in a deal that also included tighter integration between LogMeIn and Intel's products. LogMeIn a month later filed for an $86 million IPO.
Last October, LogMeIn claimed its products had been installed on more than 50 million Windows PCs, Macs, servers and other devices. But despite this success, the company has struggled to reach profitability. According to The Wall Street Journal, LogMeIn in Q1 of this year posted its first ever quarterly profit, with revenue rising 73 percent to $17.2 million during the quarter.
The worst recession in decades might seem like a challenging time for an IPO, but as others have noted, OpenTable's strong IPO last month suggests that Wall Street may be warming to the idea of investing in technology startups.