Logitech focuses on growing retail business; remains Lifesize
shareholder
Logitech International (SIX:LOGN) (Nasdaq:LOGI) today announced that its
Lifesize division has separated from the Company to become Lifesize,
Inc., a private entity. Three venture capital firms – Redpoint Ventures,
Sutter Hill Ventures and Meritech Capital Partners – have invested $17.5
million into Lifesize and join Logitech as shareholders.
Logitech will hold a 37.5 percent share in the company, based on shares
outstanding immediately following the investment.
The separation of Lifesize is another step in Logitech’s transformation
toward a simpler, faster company. It allows Logitech to focus on its
growing retail business. At the same time, it provides Lifesize with a
better opportunity to realize its full potential as a videoconferencing
software as a service (SaaS) provider in a market with strong, growing
demand. Lifesize will also benefit from the additional SaaS and
videoconferencing market experience of its new investors.
Logitech will deconsolidate Lifesize from its financials beginning with
the fourth quarter of Fiscal Year 2016. The Company expects to recognize
a non-cash gain of approximately $15 million to $20 million for its
fourth quarter of Fiscal Year 2016. Prior period results will be
reported under discontinued operations.
About Logitech
Logitech designs products that have an everyday place in people's lives,
connecting them to the digital experiences they care about. Over 30
years ago Logitech started connecting people through computers, and now
it’s designing products that bring people together through music,
gaming, video and computing. Founded in 1981, Logitech International is
a Swiss public company listed on the SIX Swiss Exchange (LOGN) and on
the Nasdaq Global Select Market (LOGI). Find Logitech at www.logitech.com,
the company blog or @Logitech.
This press release contains forward-looking statements within the
meaning of the federal securities laws, including, without limitation,
statements regarding: Logitech’s percentage ownership in Lifesize,
Lifesize’s ability to realize its full potential and benefit from the
experience of its new investors, the demand in the videoconferencing
software as a service market, and the timing and amount of Logitech’s
recognition of a non-cash gain and other accounting related to Lifesize.
The forward-looking statements in this release involve risks and
uncertainties that could cause Logitech's and Lifesize’s actual results
and events to differ materially from those anticipated in these
forward-looking statements. A discussion of the risks and uncertainties
that could cause actual results and events to differ materially from
such forward-looking statements is included in Logitech's periodic
filings with the Securities and Exchange Commission, including our
Quarterly Report on Form 10-Q for the fiscal quarter ended September 30,
2015 and our Annual Report on Form 10-K for the fiscal year ended March
31, 2015, available at www.sec.gov,
under the caption Risk Factors and elsewhere. Logitech does not
undertake any obligation to update any forward-looking statements to
reflect new information or events or circumstances occurring after the
date of this press release.
2015 Logitech, Logicool, Logi and other Logitech marks are owned by
Logitech and may be registered. All other trademarks are the
property of their respective owners. For more information about Logitech
and its products, visit the company’s website at www.logitech.com.
(LOGIIR)
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