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These guys must really be pessimistic about their future if they are accepting a deal of $86/share. Their 52 week high was $96/share, and as high as $120/share

These guys must really be pessimistic about their future if they are accepting a deal of $86/share. Their 52 week high was $96/share, and as high as $120/share last year.

jacquesm 7y ago
A 4.3 billion USD valuation at exit is not all bad news I'd say. Better a deal at 4.3 billion than none at 5.5. I'd be laughing all the way to the bank with an exit like that and not worry too much about what could have been.
- toomuchtodo 7y ago
  Wisdom. Valuations and multipliers are opinions and suggestions until the wire/fiat hits your account. Take the money and run.
  - Lavery 7y ago
    Maybe that's reasonable in private markets, but Logmein was a public company (LOGM). Valuations and multipliers for public equities are the consensus of a set of investors who buy and sell the stock all day. Anyone who wanted to take the money and run could choose to do so between the hours of 9:30 and 4 EST for the last decade.
    - deleted 7y ago
      [deleted]
      - deleted 7y ago
        [deleted]
    - jacquesm 7y ago
      That depends on the size of their holdings and on how liquid the stock really was, it might take quite a while to liquidate a large holding and it would very likely depress the market, especially if all the execs decided to liquidate their complete holdings (assuming they would be even allowed to). So the consensus is what it is given normal volume, likely a relatively small chunk of shares changing hands repeatedly rather than a really large block being sold once. The latter would almost certainly depress the price.
      - jyounker 7y ago
        In other words, you get a discount for buying in bulk. :)
        jacquesm 7y ago
        Yes, but this PE party actually paid slightly over market rate and up considerably from a week ago.
- AznHisoka 7y ago
  LogMeIn is a public company. Almost 90% of anyone who bought shares between mid-2016 and early 2019 probably saw a negative return from this because $86/share is still below the price it was at during that time. If this was a private company/startup, of course you'd be laughing all the way to the bank. Not so if you were a public investor in LogMeIn. Far from it.
  - jacquesm 7y ago
    I was mostly thinking from the perspective of a founder, not from a public investor.
    - AznHisoka 7y ago
      That might be true though the founder most likely profited most of their money awhile back after the IPO.
      - jacquesm 7y ago
        The LastPass founder made his stash during the acquisition, it was for $100M or so in cash. But what about the LogMeIn founders the IPO was a decade ago but did they still have a position in the stock, and were they still with the company?
        deleted 7y ago
        [deleted]
- brown9-2 7y ago
  Is this really an “exit”? The stock was already publicly traded.
  - jacquesm 7y ago
    Doesn't mean the founders still had a bunch of it, is there any listing of the captable, how much of it was still owned by outsiders and how much by early investors/founders?
gruez 7y ago
looks like there was a sharp drop in late july 2018. what happened?
- trophycase 7y ago
  All tech stocks dropped then, see FB for example
raiyu 7y ago
From 2017 to 2018 they nearly tripled revenue, probably a reflection of the price changes that many in this thread have complained about. The problem is that since then their growth has completely stalled out and is projected to be under 5% for both this year and next year. While their revenue tops out over $1B their net profit is pretty slim. Post acquisition expect to see a lot of cuts to improve cash flow as operations are slashed across the board, and depending on how the acquisition is funded it won't be a surprise to see the company burdened with a bunch of debt. Then PE will either try to return cash through net income, or more likely than not relist the company after two - five years when the restructuring is complete and the company has a more financially interesting profile, akin to what happened with Ping Identity. In an ideal world they will also try to increase revenue growth as well, so I wouldn't be surprised to see some more price increases coming down the line as well.
- electriclove 7y ago
  PE will continue to milk this cow like they've done before (eg Intuit, etc).
- bluepickles 7y ago
  Revenue increased because they merged with the GoTo suite of software. "On January 31, 2017, we completed our Merger with a wholly-owned subsidiary of Citrix, pursuant to which we combined with Citrix’s GoTo family of service offerings known as the GoTo Business. Following the completion of the Merger, our revenue grew to over $1 billion on an annualized basis in fiscal 2017 and we added over 1,600 employees." - https://q10k.com/LOGM https://q10k.com/LOGM
- mmargerum 7y ago
  They blindsided us with a 300% increase. I'm very much looking forward to getting off the service. They may have done very well in the short term, but they destroyed to long term business.
steveklabnik 7y ago
> Under the terms of the Agreement, LogMeIn shareholders will receive $86.05 in cash for each share of LogMeIn’s common stock they hold. This consideration represents a premium of approximately 25% to LogMeIn’s unaffected closing stock price on September 18, 2019, the last trading day before a media report was published speculating about a potential sale process. The Board of Directors of LogMeIn approved the Agreement and recommended that shareholders vote in favor of the transaction. Looks like it was only $96/share because there was rumors of this sale.

These guys must really be pessimistic about their future if they are accepting a deal of $86/share. Their 52 week high was $96/share, and as high as $120/share last year.

jacquesm 7y ago

A 4.3 billion USD valuation at exit is not all bad news I'd say. Better a deal at 4.3 billion than none at 5.5. I'd be laughing all the way to the bank with an exit like that and not worry too much about what could have been.

toomuchtodo 7y ago
Wisdom. Valuations and multipliers are opinions and suggestions until the wire/fiat hits your account. Take the money and run.
- Lavery 7y ago
  Maybe that's reasonable in private markets, but Logmein was a public company (LOGM). Valuations and multipliers for public equities are the consensus of a set of investors who buy and sell the stock all day. Anyone who wanted to take the money and run could choose to do so between the hours of 9:30 and 4 EST for the last decade.
  - deleted 7y ago
    [deleted]
    - deleted 7y ago
      [deleted]
  - jacquesm 7y ago
    That depends on the size of their holdings and on how liquid the stock really was, it might take quite a while to liquidate a large holding and it would very likely depress the market, especially if all the execs decided to liquidate their complete holdings (assuming they would be even allowed to). So the consensus is what it is given normal volume, likely a relatively small chunk of shares changing hands repeatedly rather than a really large block being sold once. The latter would almost certainly depress the price.
    - jyounker 7y ago
      In other words, you get a discount for buying in bulk. :)
      - jacquesm 7y ago
        Yes, but this PE party actually paid slightly over market rate and up considerably from a week ago.
AznHisoka 7y ago
LogMeIn is a public company. Almost 90% of anyone who bought shares between mid-2016 and early 2019 probably saw a negative return from this because $86/share is still below the price it was at during that time. If this was a private company/startup, of course you'd be laughing all the way to the bank. Not so if you were a public investor in LogMeIn. Far from it.
- jacquesm 7y ago
  I was mostly thinking from the perspective of a founder, not from a public investor.
  - AznHisoka 7y ago
    That might be true though the founder most likely profited most of their money awhile back after the IPO.
    - jacquesm 7y ago
      The LastPass founder made his stash during the acquisition, it was for $100M or so in cash. But what about the LogMeIn founders the IPO was a decade ago but did they still have a position in the stock, and were they still with the company?
      - deleted 7y ago
        [deleted]
brown9-2 7y ago
Is this really an “exit”? The stock was already publicly traded.
- jacquesm 7y ago
  Doesn't mean the founders still had a bunch of it, is there any listing of the captable, how much of it was still owned by outsiders and how much by early investors/founders?

gruez 7y ago

looks like there was a sharp drop in late july 2018. what happened?

trophycase 7y ago
All tech stocks dropped then, see FB for example

raiyu 7y ago

From 2017 to 2018 they nearly tripled revenue, probably a reflection of the price changes that many in this thread have complained about. The problem is that since then their growth has completely stalled out and is projected to be under 5% for both this year and next year. While their revenue tops out over $1B their net profit is pretty slim. Post acquisition expect to see a lot of cuts to improve cash flow as operations are slashed across the board, and depending on how the acquisition is funded it won't be a surprise to see the company burdened with a bunch of debt. Then PE will either try to return cash through net income, or more likely than not relist the company after two - five years when the restructuring is complete and the company has a more financially interesting profile, akin to what happened with Ping Identity. In an ideal world they will also try to increase revenue growth as well, so I wouldn't be surprised to see some more price increases coming down the line as well.

electriclove 7y ago
PE will continue to milk this cow like they've done before (eg Intuit, etc).
bluepickles 7y ago
Revenue increased because they merged with the GoTo suite of software. "On January 31, 2017, we completed our Merger with a wholly-owned subsidiary of Citrix, pursuant to which we combined with Citrix’s GoTo family of service offerings known as the GoTo Business. Following the completion of the Merger, our revenue grew to over $1 billion on an annualized basis in fiscal 2017 and we added over 1,600 employees." - https://q10k.com/LOGM https://q10k.com/LOGM
mmargerum 7y ago
They blindsided us with a 300% increase. I'm very much looking forward to getting off the service. They may have done very well in the short term, but they destroyed to long term business.

steveklabnik 7y ago

> Under the terms of the Agreement, LogMeIn shareholders will receive $86.05 in cash for each share of LogMeIn’s common stock they hold. This consideration represents a premium of approximately 25% to LogMeIn’s unaffected closing stock price on September 18, 2019, the last trading day before a media report was published speculating about a potential sale process. The Board of Directors of LogMeIn approved the Agreement and recommended that shareholders vote in favor of the transaction. Looks like it was only $96/share because there was rumors of this sale.