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Industry experts said this week the move Logitech International’s to acquire LifeSize Communications would create “additional opportunities” for video conferencing companies.

 

Bob Hagerty, CEO of Polycom, a Pleasanton, Calif.-based provider of telepresence, video and voice communications solutions, said the proposed acquisition offers “further evidence that visual communications is on the cusp of going mainstream.” 

Logitech (News - Alert), a Switzerland-based provider of PC video communications, announced yesterday it would buy LifeSize (News - Alert) Communications, a provider of high definition video communication solutions, for $405 million. As TMCnet reported earlier today, the acquisition is intended to help Logitech expand its PC video business beyond the desktop with HD video conferencing. It would also give Logitech access to LifeSize's 9,000 video conferencing customers.

 

Hagerty, whose company also provides HD Voice services, said the merger would enhance Polycom's (News - Alert) positioning in the market.

 

“We see this latest consolidation as creating additional opportunities for Polycom and our partners as we strengthen our position as the only independent video solution provider of scale,” Hagerty told TMCnet in an interview. “Polycom is the market share leader in the industry with the most comprehensive solution for video-enabling businesses of all sizes, and remains focused on delivering the best open, standards-based solutions to our customers. We are well positioned to lead this market.

 

The acquisition is another sign that the video and telepresence markets are poised for industry consolidation across all segments, industry officials said. Under the deal, Logitech and LifeSize plan to build new relationships with unified communications, collaboration and VoIP industry partners to bolster the development of an open eco-system for interoperable video communication. The two companies also plan to fuel video communication growth by using their combined technology expertise and Logitech’s manufacturing and supply chain operations and R&D.

 

LifeSize, which has 300 employees worldwide, will continue to operate as a separate division at its Austin, Texas location. Malloy will remain CEO and will report to Quindlen. The company expects to bring in about $90 million in revenue this year, according to company officials.

 

The proposed acquisition comes a month after Cisco Systems Inc., the world’s largest maker of computer networking gear, announced it intends to acquire TANDBERG, a Norway-based company, for about $3 billion. With the purchase, Cisco (News - Alert) plans to integrate TANDBERG’s video endpoints and network infrastructure solution into its collaboration architecture, allowing intercompany and multi-vendor interoperability across its product portfolio.

 

Cisco officials said the purchase would help strengthen the company’s position in the $34 million collaboration market and expand its presence as a player in the video conferencing sector. The deal, which the TANDBERG board of directors endorsed, is expected to close in the first half of 2010.