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Shares of LogMeIn shot up nearly 20 percent Wednesday on news of the company's merger with the GoTo unit of Citrix Systems in a roughly $1.8 billion dollar deal.
The provider of business communications services LogMeIn entered into a definitive merger agreement with Citirx for its collaborative communications services GoTo unit on Tuesday, both companies announced Tuesday.
Shares of Citrix were down about 1.5 percent after the news.
According to a joint release, the combined company is expected to have annual revenues of greater than $1 billion, with more than two million customers.
"We are extremely excited about this transformative merger and the profound benefits it will bring to our customers, our people and our shareholders," said Bill Wagner, the president and CEO of LogMeIn, who will also lead the combined company as president and CEO, in the release. "The additional scale of the combined company will allow us to accelerate innovation in order to deliver better outcomes for our customers and also creates a compelling financial model that will reward our shareholders."