Logitech buys LifeSize for $405 million


Logitech, the Swiss computer peripheral specialist, has announced a deal to acquire video conferencing company LifeSize for $405 million in cash.

The purchase gives Logitech, known for its consumer webcams, the tools to take on bigger, corporate players in the market.

"We expect this acquisition to enable Logitech to extend our leadership in video communication beyond the desktop," said Gerald Quindlen, Logitech's president and chief executive, in a statement.

"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 introduced relatively low cost 1080p solutions to the market in 2008 and recently demoed to IT PRO an entry-level system that supported Skype.

"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, in a statement.

"We believe that together with Logitech, we can realise 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."

LifeSize will continue to be based in Austin, Texas, and will now operate as a separate division of Logitech. LifeSize said it expected approximately $90 million (54.01 million) in revenue in 2009, with 2010 revenue expected to grow between 40 60 per cent.

The move denotes further consolidation in the video conferencing market, following Cisco's purchase of Norwegian company Tandberg for $3billion in October 2009.

Benny Har-Even

Benny Har-Even is a twenty-year stalwart of technology journalism who is passionate about all areas of the industry, but telecoms and mobile and home entertainment are among his chief interests. He has written for many of the leading tech publications in the UK, such as PC Pro and Wired, and previously held the position of technology editor at ITPro before regularly contributing as a freelancer.

Known affectionately as a ‘geek’ to his friends, his passion has seen him land opportunities to speak about technology on BBC television broadcasts, as well as a number of speaking engagements at industry events.