Logitech is set to acquire headphones manufacturer Plantronics for a speculated $2.2 Billion, reports Reuters. The Swiss consumer electronics company is popular for its computer peripherals such as keyboards, mice, webcams, headsets, and Bluetooth speakers. Logitech benefitted largely over the past few years by shifting their focus onto consumer accessories, demand for which have spiked thanks to the growth of gaming, music, smart home connectivity and video conferencing.
Logitech is currently valued at $5.6 billion. The company recently bought out ASTRO Gaming for $85 million to foray into the gaming sector. The Plantronics acquisition is expected to further their plans in this sector as well as in network and communications based sector. Santa Cruz based Plantronics used to sell lightweight headsets for pilots back in the 60s. They later gained recognition when they started selling their products to NASA, including the one that Neil Armstrong wore on his expedition to the moon in 1969.
Plantronics has an estimated current market value of $2 billion. Logitech International SA has reportedly offered $2.2 billion to Plantronics. If everything goes right, the acquisition could come to fruition as early as next week. This would be their largest acquisition ever. It is also possible the deal might completely fall apart as none of the parties have divulged any sort of information regarding the acquisition. Even the sources who reported the news also requested their identities to be kept confidential. Just as the news broke out, Plantronics shares increased by 5.6% to $56.50 per share.
It seems like the acquisition would benefit both the companies. They have been facing fierce contention from Cisco Systems Inc, Apple, and Google. Moreover, this would also help Logitech keep manufacturing costs down following the new trade laws under which heavy tariffs are applied onto imports from China into the USA.