Hedge fund Elliott Management and private equity firm Francisco Partners Management have teamed up and bought software firm LogMeIn.
Earlier this morning, the latter announced that it entered into a definitive agreement with Evergreen Capital Corporation, the private equity affiliate of Elliott Management Corporation, to be bought for $86.05 per share, in cash. That puts the total valuation at roughly $4.3 billion. The Board of Directors has approved the acquisition, and the shareholders are looking at a 25 per cent premium.
The transaction will be led by Francisco Partners affiliates, it was added.
“This transaction acknowledges the significant value of LogMeIn and provides our stockholders with a meaningful and certain cash offer at a compelling premium,” said Bill Wagner, President and Chief Executive Officer of LogMeIn.
“Together, Francisco Partners and Evergreen are committed to addressing the unique needs of both our core and growth assets. We believe our partnership with Francisco Partners and Evergreen will help put us in a position to deliver the operational benefits needed to achieve sustained growth over the long term.”
The acquisition will complete mid-2020, it was added, after customary closing conditions, including the receipt of stockholder and regulatory approval. The deal also includes a 45-day long “go-shop” period, in which LogMeIn and its advisors can look for alternative buyers.