NY Times
In a move to break into the videoconferencing market, Logitech International has agreed to buy LifeSize Communications, a start-up that makes high-definition videoconferencing equipment, for $405 million in cash.
LifeSize, which is based in Austin, Tex., sells videoconferencing tools that cost less than most other products on the market. The high-definition video is so clear that viewers can see scribbles on Post-it notes.
Logitech, a maker of desktops and personal computer equipment that is based in Fremont, Calif., and Switzerland, will be competing against Cisco Systems, Polycom, Microsoft, Hewlett-Packard and I.B.M, which have all made investments in the industry.
With LifeSize’s technology, Logitech aims to “make lifelike, HD-quality video communication as mainstream and seamless as a telephone,” said Gerald P. Quindlen, Logitech’s chief executive.
For a long time, videoconferencing was limited to big businesses that could afford to build expensive systems for business VoIP and video in their conference rooms. But videoconferencing has become more accessible because Internet connections are commonplace, video has become more efficient and the price has dropped for high-definition cameras and displays. Now, many companies are trying to reach small businesses and individuals that previously used low-quality webcams on PCs.
Cisco, for instance, sells its high-end TelePresence system to big businesses that install it in conference rooms. Last month, Cisco said it planned to buy Tandberg, a Norwegian video communications company, for $3 billion. Tandberg makes smaller and less expensive videoconferencing tools that can sit on desks. Cisco has said it hopes to use Tandberg’s technology to sell equipment to small businesses and individuals.
The LifeSize Passport, a high-definition videoconferencing system for use with televisions or computers, was introduced in October. The device, which weighs less than a pound and is priced under $2,500, works with Skype business VoIP services and is aimed at workers who travel or telecommute.
Andrew W. Davis, senior partner at the consulting firm Wainhouse Research, said the deal surprised many in the industry because Logitech made products for consumers while LifeSize made products for businesses. “But that wall, like the Berlin Wall, will come down,” he said. “Logitech has been aggressive in this space across a variety of fronts, and that’s who you’ll see in your living room, not Cisco.”
LifeSize, which is based in Austin, Tex., sells videoconferencing tools that cost less than most other products on the market. The high-definition video is so clear that viewers can see scribbles on Post-it notes.
Logitech, a maker of desktops and personal computer equipment that is based in Fremont, Calif., and Switzerland, will be competing against Cisco Systems, Polycom, Microsoft, Hewlett-Packard and I.B.M, which have all made investments in the industry.
With LifeSize’s technology, Logitech aims to “make lifelike, HD-quality video communication as mainstream and seamless as a telephone,” said Gerald P. Quindlen, Logitech’s chief executive.
For a long time, videoconferencing was limited to big businesses that could afford to build expensive systems for business VoIP and video in their conference rooms. But videoconferencing has become more accessible because Internet connections are commonplace, video has become more efficient and the price has dropped for high-definition cameras and displays. Now, many companies are trying to reach small businesses and individuals that previously used low-quality webcams on PCs.
Cisco, for instance, sells its high-end TelePresence system to big businesses that install it in conference rooms. Last month, Cisco said it planned to buy Tandberg, a Norwegian video communications company, for $3 billion. Tandberg makes smaller and less expensive videoconferencing tools that can sit on desks. Cisco has said it hopes to use Tandberg’s technology to sell equipment to small businesses and individuals.
The LifeSize Passport, a high-definition videoconferencing system for use with televisions or computers, was introduced in October. The device, which weighs less than a pound and is priced under $2,500, works with Skype business VoIP services and is aimed at workers who travel or telecommute.
Andrew W. Davis, senior partner at the consulting firm Wainhouse Research, said the deal surprised many in the industry because Logitech made products for consumers while LifeSize made products for businesses. “But that wall, like the Berlin Wall, will come down,” he said. “Logitech has been aggressive in this space across a variety of fronts, and that’s who you’ll see in your living room, not Cisco.”
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