LogMeIn, the makers of the popular remote desktop software as well as IT security and conferencing offerings, will become part of a Citrix subsidiary in the wake of a complicated, $1.8 billion transaction announced Tuesday by the two companies.
The transaction is what’s called a Reverse Morris Trust, which apparently allows the untaxed transfer of a subsidiary to new ownership by spinning off a new company and completing a merger. In this case, Citrix has created a wholly-owned subsidiary called GetGo, which owns its GoToMeeting products.
GetGo then merges with a wholly-owned subsidiary of LogMeIn to create a new company, in which Citrix shareholders own 50.1% of the stock and LogMeIn shareholders own 49.9%.
