On Monday, the venture capitalists at The Roda Group, which are the principal venture capital backers and majority shareholders of privately held SightSpeed Inc., expressed their satisfaction to see Switzerland-based Logitech International (NASDAQ:LOGI) acquire the award-winning provider of high-quality Internet video chat and video conferencing solutions company for nearly $30 million in cash.
The newly made acquisition will provide Logitech with video calling technology and a software and services development team that can be focused on future video calling initiatives and enable cross-platform video communications with lifelike experience for PC users.
SightSpeed of Berkeley, Calif., a provider of high-quality Internet video communications services, holds a patented video technology that ensures the highest quality, full-motion 30 frames per second video with clear audio and no annoying delay. The company's services are based on SIP (Session Initiation Protocol - originally designed in ‘96), a standard signaling protocol that enables the services to be inter-operable with other Internet communication services.
Eric Tveter, Chairman of SightSpeed and senior advisor to The Roda Group, commented:
When you nurture a startup, as we have done with SightSpeed since 2003, it’s always extremely satisfying to see a respected global leader like Logitech take your ‘baby’ under its wing. We are passionate believers in the overall market opportunity, and we couldn’t be more pleased to see SightSpeed become part of Logitech going forward. This deal is an extremely positive event for SightSpeed’s customers, shareholders and employees.
Junien Labrousse, executive vice president of Logitech’s Products group said:
With this acquisition, we are significantly augmenting our current video R&D resources to help us move more quickly toward our goals for video services that complement the way people socialize, communicate and enjoy entertainment. According to our research, there is a large untapped market of people who want to communicate with friends and family using video. But they want it to be integrated into their family lifestyle, which means going beyond the PC.
Labrousse believes SightSpeed will help Logitech create the next wave of video communications enthusiasts. The acquisition is expected to close in November, and is subject to the customary closing conditions.