LogMeIn To Combine With Citrix's GoTo Business In Approx. $1.8 Bln Deal

(RTTNews) - LogMeIn, Inc. (LOGM) and Citrix Systems, Inc. (CTXS) announced a definitive merger agreement for LogMeIn to combine with Citrix's GoTo business in a Reverse Morris Trust transaction, valued at approximately $1.8 billion. Citrix equityholders will receive an aggregate of approximately 27.6 million LogMeIn shares on a fully diluted basis. Citrix shareholders will own approximately 50.1% of all outstanding shares of the combined company on a fully diluted basis, while existing LogMeIn shareholders will own approximately 49.9% of the combined company. LogMeIn's Bill Wagner will continue in his role as President and CEO, and LogMeIn's Ed Herdiech will serve as CFO.

On July 26, 2016, LogMeIn's Board declared a special cash dividend of $0.50 per share of common stock. The special dividend will be paid on August 26, 2016 to shareholders of record on August 8, 2016. The company currently expects to declare an additional dividend of $0.50 per share of common stock prior to the consummation of the transaction and a final dividend of $0.50 per share of common stock subject to the consummation of the transaction, on or about the date of such consummation.

LogMeIn expects the combined company to have: pro forma revenue of more than $1 billion; and pro forma Adjusted EBITDA margins of approximately 35%, after realizing year one run rate cost synergies of $65 million. The combined company is expected to achieve run rate cost synergies of more than $100 million in year two.