An investor group led by affiliates of technology-focused private equity firm Francisco Partners Management LP agreed to buy LogMeIn Inc. in an all-cash deal that values the cloud-based connectivity company at roughly $4.3 billion.
The consortium includes Evergreen Coast Capital Corp., a private equity firm affiliated with hedge fund manager Elliott Management Corp.
The deal provides that LogMeIn stockholders will receive $86.05 for each common share they hold, reflecting a premium of about 25% to the company's unaffected Sept. 18 closing stock price, when media speculation about a possible sale process first came to light.
The board-approved transaction comes with a 45-day go-shop provision that allows LogMeIn and its advisers to actively solicit alternative buyout proposals.
The deal is anticipated to close in mid-2020, subject to shareholder and regulatory approvals.
Qatalyst Partners and J.P. Morgan Securities LLC are financial advisers to LogMeIn, with Latham & Watkins LLP as its legal adviser.
Mizuho Bank Ltd. is the lead financial adviser to Francisco Partners and Evergreen; Barclays, Deutsche Bank Securities, Jefferies LLC and RBC Capital Markets are their co-financial advisers; and Paul Hastings LLP, Kirkland & Ellis LLP and Gibson Dunn & Crutcher LLP are their legal advisers.
Barclays, RBC Capital, Deutsche Bank, Jefferies Finance LLC and Mizuho Bank provided committed debt financing for the deal.