LogMeIn is staying mum on one of its most recent acquisitions. In September, the Boston-based software-as-a-service company paid $15 million for Meldium, which makes it simpler to sign on to web-based services. But it paid $6 million for another San Francisco startup, according to its latest quarterly report. It only describes this second acquisition, which also took place in early September, as involving a “collaboration software provider.”
The company didn’t have much revenue: just $1,000 in the third quarter, so it sounds like this may be a very early-stage business acquired primarily for its talent, or a product in development.
LogMeIn’s senior director of corporate communications, Craig VerColen, explains via e-mail that the startup’s technology will be folded into LogMeIn’s online meeting and screen-sharing software, join.me, “as a key feature that will expand join.me’s capabilities. We’ll be revealing more details when we introduce the new capabilities to market,” likely later this year or in early 2015.
“We’re keeping the name confidential for now,” VerColen says. “As part of the acquisition, a small handful of staff will be joining LogMeIn and will be working on join.me.”
Charlie Anderson of Dougherty & Co., a research analyst who follows LogMeIn’s stock, says he hasn’t been able to figure out who LogMeIn bought last month. But Anderson writes via e-mail, “It wouldn’t shock me if it had something to do with video – [there are] lots of little video collaboration startups.”
The purchases of LogMeIn and the mystery startup mean that LogMeIn now has a growing presence in San Francisco. And it looks like this won’t be the end of the California shopping spree for LogMeIn. The company is hunting for a San Francisco-based manager of corporate development to “help drive its merger and acquisition activity on the West Coast,” according to the job listing.
LogMeIn said its third quarter revenues jumped 35 percent over the previous year’s, to $58 million.
Scott Kirsner writes the Innovation Economy column every Sunday in the Boston Globe, in which he tracks entrepreneurship, investment, and big company activities around New England.
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