Lifesize, a video communications solutions provider, has spun off from Logitech International and raised $17.5 million in funding . The new private company’s investors are Redpoint Ventures, Sutter Hill Ventures and Meritech Capital Partners. Logitech will retain a stake in Lifesize.
NEWARK, Calif. & LAUSANNE, Switzerland–(BUSINESS WIRE)–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.
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.