LogMeIn to Buy Israeli A.I. Company Nanorep for $45M
LogMeIn has agreed to acquire Nanorep, an Israeli firm that makes customer service software using artificial intelligence technologies, for around $45 million.
The Boston-based company (NASDAQ: LOGM) said it expects to pay up to an additional $5 million in “contingent cash payments to certain continuing employees of Nanorep upon their achievement of milestone and retention targets” over the two years following the deal’s closing.
Herzliya, Israel-based Nanorep makes chatbots and virtual assistant software for customer service. More than 200 companies worldwide use its products, including FedEx, Intuit, and Vodafone, according to a LogMeIn press release.
LogMeIn said the addition of Nanorep enhances its new customer relationship management product, Bold360, which it rolled out in June.
“Artificial intelligence is changing the way we interact with our favorite brands and will play a critical role in the future of customer engagement,” said LogMeIn CEO Bill Wagner (pictured above) in a prepared statement.
Founded in 2003, LogMeIn has been mostly known for remote computer access and troubleshooting software. But in recent years, it has been expanding its offerings in areas such as cybersecurity and password management, connected device software, and collaboration tools—including a $1.8 billion merger with the GoTo business of California rival Citrix Systems.
The Nanorep deal is relatively small, but LogMeIn sees it as a key piece of its broader strategy in customer service and A.I.-related technologies. The company said it intends to offer Nanorep as a standalone product, and it also “provides a natural path for us to leverage these emerging technologies across our entire portfolio,” Wagner said in the prepared statement.