In Drought-Ending IPO, LogMeIn Logs $107 Million

In the year’s first initial public offering by a venture-backed company from New England, Woburn, MA-based remote access software maker LogMeIn has raised $80 million, according to a report late Tuesday night in the Wall Street Journal. Through lead underwriters Barclays and JP Morgan Chase, the company sold 5 million shares at $16 per share—the high end of the price range it had hoped the offering would bring.

Altogether, 6.67 million shares were sold in the offering, raising $107.2 million. Of that, $27.2 million will go to individual shareholders who sold parts of their stakes, including LogMeIn CEO Michael Simon and chief technology officer Martin Anka. LogMeIn’s stock will begin trading today on the NASDAQ exchange under the ticker symbol LOGM.

It’s only the fourth time in 2009 a U.S. venture-backed company has gone public, after a four-month period at the beginning of the year with no venture-backed IPOs at all.

Whether or not the sale heralds the gradual restoration of the IPO as one of the traditional exit paths for venture investors, it’s bringing respectable returns to LogMeIn’s investors. Altogether, venture backers put $20 million into the company, in return for shares now worth a collective $155 million, according to the Journal.

Prism Venture Works, the company’s single largest shareholder, comes out of the IPO with an 18.2 percent share of the company that’s worth $62.3 million at the $16-per-share price. Polaris Venture Partners sold shares worth $7.4 million in the offering and is holding onto a 13.9 percent stake worth $47.6 million. Intel Capital’s 4.2 percent stake is now worth $14.2 million, and Integral Capital Partners sold shares worth $5 million and retained a 5.4 percent stake worth $18.4 million.

Medidata of New York, OpenTable of San Francisco, and SolarWinds of Austin, TX, are the other three venture-backed companies that risked IPOs this year.

UPDATE 1-Intel-backed LogMeIn to price IPO July 1

NEW YORK, June 16 (Reuters) - Technology company LogMeIn Inc (LOGM.O) has set the terms of its planned $100 million initial public offering, according to a regulatory filing on Tuesday.





Massachusetts-based LogMeIn, whose backers include Intel Corp (INTC.O), plans to sell 6.7 million shares for between $14 and $16, according to a prospectus filed with the U.S. Securities and Exchange Commission.

The IPO, to be led by JP Morgan (JPM.N) and Barclays Capital (BARC.L), is scheduled to price July 1, with trading beginning the next day on Nasdaq. LogMeIn filed its original IPO registration in January 2008.

LogMeIn provides on-demand remote-connectivity services to small business and consumers, and derives most of its revenue from subscriptions, according to its prospectus.

LogMeIn has just begun to be profitable. The company's sales nearly doubled to $51.7 million in 2008, but LogMeIn still sustained losses for the year, the third in a row with losses. But for the first three months of 2009, LogMeIn made a profit of $2.1 million on revenue of $17.2 million.

LogMeIn will reap about 75 percent of the IPO's proceeds, with the rest going to existing shareholders, according to the filing.

Those owners include Intel Capital, which currently holds 5.4 percent of LogMeIn, and venture capital firms Prism Venture Partners with a 23.8 percent stake, and Polaris Venture Partners with a 21 percent share, Technologieholding Central and Eastern European Funds (15.83), Integral Capital Partners (8.91%).

The deal's underwriters have the option to purchase another 1 million shares to cover over-allotments.