Logitech to buy HD video company for $US405 million

The deal will let Logitech target enterprise and other business users with video conferencing products

Logitech plans to acquire LifeSize Communications, a company that makes HD video communications equipment, for US$405 million in cash, the companies said Tuesday.

Logitech, whose video business is focused mainly on webcams, hopes the deal will allow it to offer video communications systems for other settings besides the desktop, it said. LifeSize targets a wide range of customers including enterprises that want installations in their boardrooms, small and medium-sized businesses, and home office workers. It also targets education, health care and government customers.

LifeSize has 9,000 video conferencing customers in 80 countries, Logitech said.

The acquisition could put Logitech in competition with companies including Cisco Systems, which has been pushing deeper into the telepresence and videoconferencing markets. Cisco is currently trying to buy videoconferencing provider Tandberg for $3 billion, although it has yet to secure a deal.

Logitech said it will work with unified communications and VoIP (voice over Internet protocol) partners to encourage a more open environment in which video communications systems can interoperate.

Logitech hopes to close the deal in December subject to customary closing conditions, including antitrust approvals. If the deal goes through, LifeSize will operate as a Logitech division from its current location in Austin, Texas.

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