LogMeIn To Buy Jive Communications For $342M For Enterprise Channel And UC Portfolio

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In a move that will expand on video conferencing market leader LogMeIn's unified communications (UC) and collaboration strategy, the company revealed plans on Thursday to acquire cloud-based UC provider Jive Communications for $342 million, plus up to $15 million in incentives.

Boston-based LogMeIn said that the purchase will add Jive's portfolio of cloud-based phone systems and UC solutions to its own existing suite of collaboration and video products. These include GoToMeeting, GoToWebinar, OpenVoice. The deal will also bring Jive's substantial channel expertise to the table.

"Jive has a very strong channel program, and it's something we're very excited about. [Jive] has a deeper expertise in channels than we do – it's something historically LogMeIn has not been focused on. We think we can learn from Jive's strong [channel business] and leverage across our whole portfolio," Bill Wagner, president and CEO of LogMeIn said during a Thursday morning conference call about the acquisition.  

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The two companies expect the deal, which is subject to regulatory approvals, to close during the second quarter of 2018. A spokesperson for LogMeIn told CRN that the company will have more specific details on how Jive's channel program will be integrated into its business after the deal closes.

Jive Communications, a privately-held Orem, Utah-based startup currently serves about 20,000 customers worldwide. The company has focused primarily on hosted VoIP for enterprise users as these customers have been moving off legacy voice services in favor of VoIP and cloud-based solutions.

In addition to the U.S., Jive has offices in Canada and Latin America. The company has raised about $31 million in funding since it was founded in 2006.

By comparison, LogMeIn, a web conferencing and events market leader, currently serves 25 million users to date.

“Jive’s success in UCaaS is a testament to its modern cloud-based platform, its deliberate focus on customer satisfaction, and its renowned culture of innovation. We believe the combination of Jive’s award-winning voice, video, contact center and mobile applications with our leading collaboration products … will give LogMeIn one of the best and most comprehensive UCC offerings in the market,” Wagner said of the deal in a statement.

Jive Communications offers three VoIP partner models, including a reseller, referral, and an authorized partner program for solution providers selling its hosted voice, cloud contact center, voice and mobile solutions. LogMeIn launched its first channel program geared toward MSP partners in 2013. Today, the company has a referral partner program for VARs, systems integrators and solution providers.

Via the terms of the deal, John Pope, the CEO of Jive Communications, is expected to continue to run the Jive Communications business and will report directly to Wagner.

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