IPO Alert: LogMeIn (LOGM, INTC)

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LogMeIn, Inc. is coming public in an IPO and the terms are being set.   The registration has been set for 6.666667 million shares of common stock being sold in a price range being set preliminarily at $14.00 to $16.00 per share.  The company is offering 5,000,000 shares of common stock and selling stockholders are offering an additional 1,666,667 shares of common stock. The company’s stock ticker will be on the NASDAQ Global Market under the symbol “LOGM.” Intel Corporation (NASDAQ: INTC) is a 5.43% stakeholder via the Intel Capital arm.

J.P. Morgan and Barclays Capital are the lead underwriters, with co-managers being listed as Thomas Weisel, Piper Jaffray, and RBC Capital Markets.  Underwriters will have an over-allotment option to purchase another 1 million shares of common stock.

LogMeIn provides on-demand, remote-connectivity solutions to small and medium-sized businesses, IT service providers and consumers.  It manages computers and other Internet-enabled devices remotely.  The company’s paying customer base grew from approximately 122,000 premium accounts as of March 31, 2008 to approximately 188,000 premium accounts as of March 31, 2009.  Its premium services are sold on a subscription basis at prices ranging from approximately $30.00 to $1,900.00 per year.

During the three months ended March 31, 2009, LogMeIn completed over 120,000 transactions at an average transaction price of approximately $153.00 and generated revenues of $17.2 million, a gain of about 73% compared to $9.9 million in the three months ended March 31, 2008. Its fiscal 2008 revenues were roughly $51.7 million.  The company will have 21,383,301 shares of common stock outstanding after the IPO.

We have actually seen LogMeIn in use, and for mobile business people that need to access data on the fly this is a major time saver that simplifies business travel.  It is also a perfect solution for remote support and services. Its Ignition product allows you to travel with nothing more than a thumb drive that can be plugged into any computer and allows you to access your own workstation from anywhere with a zero-footprint on the remote PC.

The full IPO Filing can be seen here.

Jon C. Ogg
June 16, 2009