The FINANCIAL — Logitech International on January 4 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, according to Logitech.
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.
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