What was changed
LogMeIn had grown into a top-tier public SaaS company through acquisitions, but by 2019 its growth had slowed and the market was unsure how to value its mix of connectivity, identity and engagement products.
In December 2019 the company agreed to be acquired by affiliates of Francisco Partners and Evergreen Coast Capital, the private-equity arm of Elliott Management, which described its involvement as building on 'long-term involvement in the business'. Shareholders received $86.05 per share in cash, about 25% above the pre-speculation price.
The board approved the deal and recommended it, arguing the buyers would give both the core and growth assets the operational focus each needed.
What it achieved
The all-cash deal paid $86.05 per share, a 25% premium over the pre-speculation price, and valued LogMeIn at about $4.3 billion.
Why it worked
Elliott's affiliate knew the business from a long prior involvement.
The 25% premium rewarded holders before any turnaround risk.
Private ownership separated core cash flows from growth bets.
What can be applied
When a company's core and growth assets need different owners, a take-private led by an activist affiliate can price that better than the market.
Aftermath
LogMeIn shareholders approved the merger and the company delisted in mid-2020. It continued operating under Francisco Partners and Evergreen with a mandate to invest in its products and growth portfolio.
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