Software maker LogMeIn Inc said its services and marketing agreement with chip giant Intel Corp will be terminated as anticipated, effective December 26, because of lack of market demand for the co-developed technology.
In July, LogMeIn reported the possibility of Intel ending this multi-year deal a year early.
During the term of the agreement, Intel paid LogMeIn, which makes software to access computers remotely by using the Internet, a minimum quarterly license and service fee of $1.25 million.
Intel will continue to owe LogMeIn the minimum quarterly fees for the rest of 2010 and will pay a one-time termination fee of $2.5 million, the company said in a regulatory filing.
LogMeIn also said it intended to defend patent infringement claims made by 01 Communique Laboratory Inc (ONE.TO) seeking damages and injunctive relief.
Shares of the company, which have risen almost 60 percent since their debut in July last year, closed at $31.94 Friday on Nasdaq.