Logitech Separates Lifesize Division, Notes 'Transformation Toward A Simpler, Faster Company'

Logitech International SA (NASDAQ: LOGI) confirmed on Tuesday a spin-off of its Lifesize division which will now become a private entity called Lifesize, Inc.

Logitech said that it will maintain a 37.5 percent stake in Lifesize and that 3 separate venture capital firms invested $17.5 million into the new entity to join Logitech as shareholders.

"The separation of Lifesize is another step in Logitech's transformation toward a simpler, faster company," Logitech said in its press release. "It allows Logitech to focus on its growing retail business. At the same time, it provides Lifesize with a better opportunity to realize its full potential as a videoconferencing software as a service (SaaS) provider in a market with strong, growing demand."

Shares of Logitech were trading lower by around 1 percent early Wednesday morning but are still higher by 14 percent since the start of 2015.