The Unified Communications market has been in a bit of a consolidation trend for a little while now. We’ve seen Cisco snatch up Broadsoft, Mitel acquire ShoreTel, and Star2Star merge with Blueface just at the beginning of 2018. The trend only continues, with the latest news coming from Jive Communications. Just announced today, leading collaboration provider LogMeIn has entered a deal to acquire Jive in an effort to enter into the Unified Communications and Collaboration market.
Through this acquisition, LogMeIn will gain the capabilities to enter into the business telephony market, as well as bolster their existing communication and collaboration portfolio. The deal is expected to close by Q2 of 2018, with LogMeIn expected to pay $342 million in cash upon close, as well as up to $15 in contingency payments upon the achievement of specific milestones within the next two years.
A New Collaboration Powerhouse
LogMeIn is already known for their incredibly popular collaboration solutions, including GoToMeeting, GoToWebinar, OpenVoice and Join.me. Together, LogMeIn serves over 25 million users, seven million meetings, and 900 million conferencing minutes every month. It’s safe to say LogMeIn is already a bit of a collaboration powerhouse.
But now with Jive Communications under their belt, LogMeIn is able to spread their wings a bit further and branch into both the Enterprise space, and the UCaaS market overall. Jive brings to the table a complete cloud-based telephony solution, also including video conferencing, a contact center software solution, and even SD-WAN capabilities. In their announcement of this acquisition, President and CEO of LogMeIn further explains their reasoning for snatching up the hosted VoIP provider:
“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, GoToMeeting and join.me, will give LogMeIn one of the best and most comprehensive UCC offerings in the market,” said Bill Wagner, President and CEO of LogMeIn. “The result is a deal that will accelerate our overall growth, set a new standard in the UCC market, and provide us with a foundation upon which we’ll build the next generation of LogMeIn’s UCC portfolio.”
By bringing in these robust telephony capabilities, LogMeIn is now able to service both midmarket and enterprise level customers with not only the tools they need to hold successful meetings, but an entire communication platform built from the ground up to work directly in the cloud. According to the announcement, Jive will continue to operate as its own entity, with existing CEO of Jive Communications, John Pope, reporting directly to Wagner.
An Impressive Portfolio
LogMeIn is no stranger to acquisitions, and the provider already has an impressive portfolio of existing products and solutions. When you take a quick glance at their overall presence, it makes a ton of sense that LogMeIn would snatch up a provider like Jive Communications.
LogMeIn’s existing communications and collaboration solutions include:
- GoToMeeting – Online meetings with 100 participants, HD video and screen sharing
- GoToWebinar – Host webinars and online events
- me – Host meetings for external collaboration
- GoToTraining – Enable robust online training in virtual or hybrid situations
- Grasshopper – Entrepreneur focused telephony with virtual numbers, soft phones, and strong mobile support
- OpenVoice – Conference calling integrated with GoToMeeting, GoToWebinar and GoToTraining
So, as you can tell, LogMeIn already has a strong presence in the collaboration market, especially when it comes to video collaboration, and of course that includes our favorite feature, screen sharing. But what really sticks out to me is the fact that LogMeIn already owns Grasshopper, an entrepreneur and SMB focused VoIP and virtual number provider.
Now, Grasshopper isn’t an exact competitor to Jive, there’s a bit of a difference in their solutions — Grasshopper being more focused on small teams, and enabling those entrepreneurs to gain a professional image without the burden of an entire phone system. Jive, on the other hand, provides an entire telephony solution, and has the capability to serve even large Enterprise organizations.
So, to me, Grasshopper represents the smallest end of the VoIP telephony market, while Jive better represents the mid and up market side of VoIP. Together, LogMeIn has the capability to serve the smallest of teams, as well as large Enterprise seats. This helps place LogMeIn in a strong position in the massive UC&C market.
The Bottom Line
The Unified Communications and Collaboration market continues on its trend of consolidation with this latest announcement. Its interesting to see new names, like LogMeIn, making their way into this somewhat crowded industry. However, what’s more interesting to see is how these new names place a different spin on their solutions, offering something different from existing competitors in the space.
With their already impressive portfolio of video and web conferencing solutions, I wouldn’t be too surprised to see these aspects become the main focal point of Jive’s services as time goes on. It would make absolute sense for LogMeIn to leverage their existing portfolio with this new piece of the puzzle.