LogMeIn merging with Citrix's GoTo business
Remote access software maker LogMeIn is merging with Citrix's GoTo business, the companies announced Tuesday, in a deal valued at $1.8 billion.
Citrix said back in November that it would spin off its GoTo family of products as a separate company -- by combining the spinoff with a merger, the transfer (in the guise of a merger) is tax free for Citrix. This sort of transaction is called a "Reverse Morris Trust."
The deal has been unanimously approved by the boards of directors of both Citrix and LogMeIn.
"We believe this combination is a winning outcome for all parties," Citrix CEO Kirill Tatarinov said in a statement. "Both LogMeIn and GoTo have a shared goal of developing innovative solutions to exceed customer expectations by simplifying business and personal communications. Given that we have already been working towards a spinoff of GoTo, we expect this to be a smooth transition for the business."
With more than 2 million customers, the combined company should have annual revenues topping $1 billion.
Now that it's unloaded its GoTo products, Citrix is focusing on its core businesses like its updated virtualization platforms.