Logitech announced it has agreed to acquire LifeSize Communications, a privately held company specializing in high-definition video conferencing equipment, for $405 million in cash. The deal gives Logitech instant access to some 9,000 video conferencing customers across 80 countries in businesses both big and small.
"We expect this acquisition to enable Logitech to extend our leadership in video communication beyond the desktop," said Gerald P. Quindlen , Logitech president and chief executive office. "Together we can make life-like, HD-quality video communication as mainstream and seamless as a telephone, for meeting participants in the boardroom, at their office desk, in a remote-location meeting room, telecommuting from, or on the go with a laptop."
Logitech said it plans for LifeSize to continue to operate as a separate division under the direction of Craig Malloy, the start-up's co-founder and CEO.
The deal also thrusts Logitech into direct competition with market heavyweights such as Cisco, Microsoft, HP, IBM, and others. Cisco especially will be one to look out for, as the company just recently announced it would spend $3 billion acquiring Tandberg, a Norwegian video communications company, following share holder approval.