LogMeIn drops $16.5M for chatting service Bold Software

The customer service company behind Best Buy looks for more tech to boost online services

It's just the second week of the year, and already we're seeing a string of acquisitions announced.

Web chatting software company Bold Software has been acquired by remote access tool company LogMeIn for nearly $16.5 million in cash. The Woburn, Mass.-based LogMeIn states that it plans to use the technology from Bold Software to expand the capabilities of its products for current and future customers.

Bold Software's BoldChat product line which allows live chat and click-to-call customer service solution will be folded into the mobile and support operations for organizations such as Best Buy's Geek Squad and remote diagnoses.  

This acquisition is a part of a larger strategy to expand the company's Web-based services aimed toward customer care organizations -- including call centers, external help desks and customer service teams.

Even after this announcement, BoldChat will still be available as a standalone offering, while it will also be integrated into other LogMeIn products.

"We're seeing a shift in the way companies are approaching customer care, as well as the ways they are gauging its impact and effectiveness," said Michael Simon, CEO of LogMeIn, in a statement. "Where just a few years ago, self-help and deflection may have been the predominant approach, companies are now seeking opportunities for meaningful engagement with their customers and prospects." 

President and CEO of Bold Software since 2005, Steve Castro-Miller and his team will be joining the LogMeIn group to help build the a deeper integrated methods of customer engagement foundation, especailly in the demanding fields of customer service and ecommerce. Bold Software was founded in 2003 and is a private company that has not disclosed and venture funding since its inception.

LogMeIn (NASDAQ: LOGM) has been providing cloud-based remote access, support and collaboration solutions since 2003 and has various products used by more than 13 million people on over 100 million devices. The company went public in 2009 and experienced the initial 30% pop in early trading. The stock debuted on the public market at $16 and was trading on the heels of this acquisition near $38.46.

Earlier this month, we reported that Q4 of 2011 was a weak one in the world of acquisitions, but this quarter feels active already. The final months of last year, there were 103 acquisitions valued at $9 billion, making the fourth quarter the least active quarter of the year, according to a VentureSource report.

For the entire year, 460 companies were bought for $46.4 billion, down 13% from the activity seen in 2010. But the deals were valued much higher as the total amount spent for the purchases was 30% higher than the $35.6 billion spent in 2010. 

With just a few days into 2012, there have been several noticable Internet tech acquisitons including the Bold Software purchase. We have also seen the $30 million deal that Internap cut to buy the IT solution company Voxel, Ziff Davis' purchas of publishing forum Toolbox.com, for an undisclosed amount and the $27 million spent by KIT for the online TV platform Sezmi.

I, for one, am excited to see what other companies are looking to pick up young technology start-ups to boost their services to a whole new level.