Google Buys Xively for $50M to Build IoT Muscle
Google has entered into an agreement to buy Xively, a division of LogMeIn Inc., for $50 million, to build strength in the Internet of Things.
"This acquisition, subject to closing conditions, will complement Google Cloud's effort to provide a fully managed IoT service that easily and securely connects, manages, and ingests data from globally dispersed devices," according to a post on Google (Nasdaq: GOOG)'s Keyword blog on Thursday signed by Anthony Passemard, product management, IoT and Pub/Sub, Google Cloud.
"With the addition of Xively's robust, enterprise-ready IoT platform, we can accelerate our customers' timeline from IoT vision to product, as they look to build their connected business," the blog post says.
The sale means LogMeIn is focusing on customer engagement, unified communications and collaboration (UCC) and identity access management, according to a post on the LogMeIn blog signed by Bill Wagner (no relation), LogMeIn president and CEO. Last week, LogMeIn announced a deal to acquire Jive Communications to join LogMeIn's collaboration apps including GoToMeeting and join.me together with Jive's cloud telephony. LogMeIn provides the popular identity app LastPass.
"So the obvious question is, does this mean LogMeIn is exiting the IoT?" LogMeIn says. "Well, if you mean the IoT connectivity platform space, yes, we're leaving it. We believe that Google Cloud, now armed with Xively's team and great technology -- and backed by their platform and developer heritage and reach -- are a far better fit for the future of platform leadership. What we will continue to do is invest in our Support-of-Things initiatives for products like LogMeIn Rescue, Bold360, GoToAssist, Central, Rescue Lens and SeeIt -- all offerings that will continue to help our customers support new types of connected products, as well as the connected consumers that use them."
Google is paying $50 million for Xively, which generated $3 million in revenue and $13 million GAAP expenses for LogMeIn, which is sending 45 employees to Google's payroll as part of the transaction, according to a LogMeIn earnings call Thursday.
LogMeIn acquired Xively in 2014 for $12 million.
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— Mitch Wagner Editor, Enterprise Cloud News