Hedge fund Elliott Management and private equity firm Francisco Partners Management are teaming up to try and buy software firm LogMeIn.
Citing people familiar with the matter, the media are saying that the deal could be worth around $4 billion. Nothing is official yet, the talks could break down at any moment, and all companies involved in the potential acquisition deal are keeping their lips sealed for the moment.
The news, however, was enough to send LogMeIn's shares flying. They went up 8.4 per cent on the news, which placed the company's total value at $3.9 billion.
According to a Bloomberg report, Elliott has a history with LogMeIn, with Jesse Cohn, the company partner and head of US activisim, being on LogMeIn's board for 16 months, since January 2017.
Cohn joined LogMeIn's board when the company merged with Citrix Systems' GoTo. It was also said that Elliott had a 2.4 per cent stake at the company last year.
This is also not the first time these two companies teamed up for an acquisition. Almost four years ago, the duo acquired Quest Software from Dell, a company which they are now looking to sell.
According to the media, they will be looking to sell for at least $3.5 billion.