LogMeIn is a global cloud-based software provider of collaboration and connectivity solutions listed on Nasdaq. When TDM first invested, LogMeIn had a market capitalisation of approximately $400m and revenue of approximately $120m. Today the business has a market capitalisation of approximately US$6.6bn and revenue over $1bn.
LogMeIn is a world-class business led by world class people which was classically mis-understood by the market. It is another case of TDM taking the time to understand the components of the business better than others and backing a great management team to create significant long term shareholder value.
TDM initially invested in June 2012 after creating a strong relationship with the senior management team in the two years following IPO. With an equity ownership of up to 4% of the company, we exited the investment in 2016 following the announcement of the merger with competitor GoToMeeting.
Our partnership with the company involved supporting the management team through some challenging years which saw a 50% decline in share price, as well as consultation on their capital management strategy including major share repurchase programs.
The LogMeIn case study highlights TDM’s ability to work in markets outside of Australia, with real hands-on value add strategic advice.
LogMeIn delivered strong revenue and earnings growth, well ahead of the expectations of other investors. This enabled a return on investment for TDM of >4.0x.
‘’TDM has provided us with thoughtful feedback and insight around a host of issues, and for that and their consistent support, it’s been a pleasure to work with them.’’