Logitech snaps up LifeSize

LOGITECH HAS ANNOUNCED that it will acquire video conferencing outfit Lifesize in a $405 million cash deal.

Lifesize specialises in high definition video conferencing systems for large enterprises and smaller businesses alike, boasting around 9,000 customers to date. On the other side, Logitech's high definition webcams are certified for use with Skype.

Logitech hopes the acquisition will help extend its video communications "beyond the desktop", while Lifesize sees this as an opportunity to expand its reach to even very small businesses.

"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 home or on the go with a laptop," said Gerald Quindlen, president and chief executive officer of Logitech.

Much like it did when it bought 3DConnexion, Logitech plans to keep Lifesize as a separate division in Austin under the leadership of chief executive Craig Malloy. The two groups will work together on unified communications and collaboration systems.

The news was generally welcomed by other players in the industry who see it as a validation of the progress being made in video calling, both in terms of quality and network requirements.

"For many years video conferencing just didn't work because the quality was inconsistent and the delays were too long for highly interactive communications," said Ofer Shapiro, chief executive officer of Vidyo.

"Today's news is further evidence that visual communications is on the cusp of going mainstream," added Steve Leyland, general manager for EMEA at Polycom.

The purchase still has to jump through all the regulatory hoops, but assuming all goes smoothly it is expected to be wrapped up in December. µ