LogMeIn Inc. announced Tuesday that it will combine with Citrix Systems Inc.'s GoTo business in a reverse-merger deal valued at $1.8 billion. In connection with the deal, LogMeIn, a cloud communication company, has declared a special cash dividend of 50 cents a share, to be paid Aug. 26 to shareholders of record on Aug. 8. The combined company is expected to have annual revenue of more than $1 billion, and to achieve cost synergies of $65 million within the first year and $100 million in the second year. Details of the deal include Citrix creating a wholly-owned subsidiary, or GetGo to hold the GoTo business, then distribute that subsidiary to its shareholders. The GetGo subsidiary will then merger with a wholly-owned subsidiary of LogMeIn. Prior to trading halts, LogMeIn's stock surged 6.7% in afternoon trade and Citrix shares gained 1.2%. Year to date, shares of LogMeIn tacked on 3.9%, Citrix soared 18% and the S&P 500 gained 6.1%.
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