Logitech International announced that its Lifesize videoconferencing division separated from the company to become Lifesize, a private entity. Three venture capital firms, namely Redpoint Ventures, Sutter Hill Ventures and Meritech Capital Partners, invested USD 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, Logitech said. It allows Logitech to focus on its growing retail business. At the same time, it provides Lifesize with a better opportunity to realise its full potential as a video-conferencing software as a service (SaaS) provider in a market with strong, growing demand. Lifesize will also benefit from the additional SaaS and video-conferencing 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 recognise a non-cash gain of approximately USD 15-20 million for its fourth quarter.
