Jive Communications

Deal Snapshot

Company: Jive Communications, Inc.

Website: www.jive.com

Sector / Category: Cloud communications / UCaaS / hosted VoIP

Headquarters: Orem, Utah

Founded: 2006

Investor: Frazier VC

Investment Vehicle: Fund I

Deal Type: Secondary purchase

Company Overview

Jive Communications provided cloud-based phone systems and unified communications services for commercial and public-sector customers. Its platform combined hosted VoIP, communications management, and related collaboration capabilities in a simple, scalable delivery model aimed at organizations moving away from legacy on-premise telephony.

Public Funding / Capital Events

2010 — Revenue-based financing from Lighter Capital Lighter Capital identifies Jive as its first client and says the company received revenue-based financing in 2010. This early non-dilutive capital helped support the company before larger institutional backing arrived.

2011 — Additional revenue-based financing from Lighter Capital Lighter Capital also states that Jive received a second revenue-based financing in 2011. Public summaries describe this as part of the company’s broader capital stack during its early growth phase.

Feb 8, 2018 — Acquisition announced by LogMeIn LogMeIn announced a definitive agreement to acquire Jive Communications, describing Jive as a leading provider of cloud-based phone systems and unified communications services. Public reporting pegged the transaction at up to $357 million, including retention-related components.

Apr 3, 2018 — Acquisition completed by LogMeIn LogMeIn later disclosed in SEC filings that it completed the acquisition of Jive on April 3, 2018. The deal brought Jive into LogMeIn’s broader collaboration and unified communications portfolio.

Investment Summary

Frazier VC invested in Jive Communications through Fund I via a secondary purchase in October 2016.

Why We Invested

Jive operated in a large and growing communications market as businesses increasingly shifted from legacy phone systems to cloud-based voice and unified communications platforms. Its product combined core telephony infrastructure with a software-driven delivery model, giving customers a more flexible system that could scale across distributed offices and growing teams. That kind of communications platform tends to create meaningful switching costs because phone systems, numbers, workflows, and admin tools become deeply embedded in day-to-day operations. Jive also showed strong execution through sustained customer growth and an eventual strategic acquisition by LogMeIn.

Other Investors

• Guidepost Growth Equity

• Lighter Capital