LogMeIn Acquires Jive Communications, Solidifying its Collaboration Portfolio and Making its Entry into the UCaaS Market
Feb 09, 2018
On February 8, 2018, LogMeIn announced that it had entered into a definitive agreement to acquire Jive Communications, one of the fastest-growing UCaaS and collaboration providers. The deal is expected to close during the second quarter of 2018, subject to certain regulatory approvals and customary closing conditions.
Known for its high-quality conferencing and collaboration services, LogMeIn has one of the broadest collaboration portfolios in the industry with proven solutions built for specific use cases and business outcomes. The company’s services include its home-grown join.me web and video conferencing solution, as well as the vast GoTo portfolio (GoToMeeting, GoToTraining, GoToWebinar, GoToAssist, GoToMyPC, Grasshopper and Openvoice), acquired from Citrix in 2016.
With cloud collaboration services representing over half of the company’s revenue (the rest relates to its remote-access and IT management services), LogMeIn has grown both organically and inorganically over the years to become the number two provider of web and video conferencing services worldwide after Cisco. Through Jive Communications’ acquisition, LogMeIn will further augment its web and visual collaboration portfolio. Through the acquisition of Speek in 2015, Jive had added advanced cloud-based conferencing and web collaboration capabilities to its portfolio. Jive Video, launched in 2016, is a multi-party video conferencing service, which integrates with Jive’s conferencing and the rest of Jive’s portfolio.
Jive Communications has quietly emerged as one of the fastest-growing hosted IP telephony and UCaaS providers in North America. With a strong focus on continued product enhancements, service reliability, competitive pricing, and customer service it has earned a position among the top 10 providers in the region. Jive uses a home-grown, standards-based cloud communications platform which allows it to innovate more rapidly and cost-effectively than other market participants who rely on third-party platforms.
With the acquisition of Jive Communications, LogMeIn is not only solidifying its web and video collaboration portfolio, but also announcing its foray into the UCaaS space via a company that already has over 20,000 customers worldwide. Jive’s customers include high-growth businesses and public-sector institutions. LogMeIn will now be well positioned to capitalize on the projected double-digit growth rates in the global UCaaS market. It is also likely to be able to better differentiate from other conferencing providers with no telephony and/or messaging services in their portfolio. Furthermore, it will be better positioned to create stickier customer relationships and more effectively protect its customer base from churning to more diversified providers with well-rounded UCaaS plus conferencing/collaboration portfolios, such as 8x8, Fuze and RingCentral.
A key asset in the acquisition is Jive Communications’ extensive channel partner ecosystem that LogMeIn can leverage to extend its reach. LogMeIn and GoTo primarily rely on direct sales today. Another asset that comes with Jive communications is its distributed cloud architecture, which enables high-quality voice services and more cost-effective scalability. LogMeIn is also gaining a team with superior engineering skills and a set of geo-redundant data centers across North America, Sao Paulo (Brazil) and London (UK). To read more on Jive Communications, please download Frost & Sullivan’s 2018 Cloud Communications Buyers’ Guide. Jive Communications benefits from the acquisition by becoming part of a larger entity with a strong brand, greater marketing outreach and a vast customer base that it can sell its UCaaS solutions to.
Today more and more customers are asking for a single solution for their telephony, collaboration and contact center needs. This acquisition gives LogMeIn a comprehensive UCC portfolio that allows it to deliver greater customer value and gain market share through accelerated growth. Success will, however, depend on the new entity’s ability to streamline a diverse portfolio, simplify branding, educate and train internal sales forces and the channel, and unite all resources under a common vision.
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