Cloud communications and information technology giant LogMeIn Inc. today announced plans to acquire Jive Communications Inc., a provider of managed internet voice services based out of Utah, to cement its position in a key market.

The deal is valued at $342 million and will bolster LogMeIn’s existing communications business. The division consists in large part of assets that the company gained through a previous acquisition, the $1.8 billion purchase in 2016 of Citrix Systems Inc. subsidiary GoTo, best known for its GoToMeeting service. Publicly traded LogMeIn also has a sizable presence in several other segments including customer support and connected-device management.

Across the board, the company claims to serve some 25 million individual users. For its part, Jive said more than 20,000 organizations use its services. The company’s flagship offering is a cloud-based “Voice over Internet Protocol” or VoIP platform that provides the ability to control how inbound calls are routed within a company and set up essential functions such as voice menus for support lines.

Jive also sells a version of the platform adapted to contact centers, along with several other products. Among them is an outage protection service that can ensure core phone functions keep running in the event of connectivity issues and a videoconferencing tool similar to GoToMeeting.

LogMeIn Chief Executive Officer Bill Wagner has high hopes for the acquisition. He said in a prepared statement that the deal “will accelerate our overall growth, set a new standard in the UCC [unified communications and collaboration] market, and provide us with a foundation upon which we’ll build the next generation of LogMeIn’s UCC portfolio.” The development effort will presumably place a particular emphasis on integrating its products with Jive’s VoIP system.

The deal is expected to be completed in the second quarter. On top of the $342 million price tag, LogMeIn will also pay out up to $15 million in additional compensation over the next two years if certain performance goals are met. Jive CEO John Pope is set to stay aboard to lead the business.

The deal coincidentally comes eight months after Jive Software Inc., another communications provider, was acquired in a $462 million deal.

Image: LogMeIn