Citrix in Deal to Merge GoTo Meeting Business With LogMeIn

By Liz Hoffman and Dana Cimilluca 

Citrix Systems Inc. struck a deal to merge its virtual-meeting division with LogMeIn Inc., a transaction that would beef up a business Citrix was already planning to spin off.

The deal is to be structured as a so-called Reverse Morris Trust, a tax-free transaction that has been popular of late as companies look to slim down and become more focused.

The deal values LogMeIn at a slight premium to its market value Tuesday afternoon of $1.7 billion. Fort Lauderdale, Fla.-based Citrix had already said it would spin off the business, known as GoTo, in a tax-free deal in the second half of the year.

GoTo's software allows users to connect to business meetings from various devices, among other functions. It had revenue of about $600 million in the 12 months ended September. Boston-based LogMeIn also makes software that allows users to collaborate remotely. Its annual revenue, which comes mostly from subscriptions, has roughly doubled since 2012 and came in at $272 million last year.

Write to Liz Hoffman at [e-mail] and Dana Cimilluca at [e-mail]

(END) Dow Jones Newswires

July 26, 2016 16:30 ET (20:30 GMT)

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