Logitech confirms the rumours that it was talking to Plantronics about a possible acquisition, but says that no deal could be reached. According to Reuters, the Swiss company had $2.2 billion left over for the acquisition.
Logitech is particularly strong in the consumer segment with its keyboards, mice, webcams and (gaming) headsets. However, the company also serves the business segment with products and applications for the office environment. Plantronics specializes in bluetooth headsets and UC (Unified Communications) hardware, and could have been an important addition to Logitech’s business portfolio.
Both Logitech and Plantronics are competing in the business market with major competitors such as Cisco, but new offers from Microsoft and Google are also putting pressure on the market. The reality today is that no player offers the fully integrated stack, but most do have more scale and resources than both companies. A Plantronics acquisition would give Logitech the scale and resources to compete more effectively.
While companies generally do not respond to acquisition rumors, Logitech does so in accordance with Swiss disclosure requirements. It confirms that discussions about a possible takeover have taken place, but were eventually terminated. Logitech reserves the right to make further comments.
Plantronics has also reacted exceptionally to the rumours. We have made great progress in preparing the company for the next phase of profitable growth and we are very well positioned to achieve our long-term goals, as evidenced by our strong results in the second quarter of 2019, says Joe Burton, CEO of Plantronics. I am and remain extremely optimistic about the opportunities that lie ahead, and with our focused strategy and leadership team, I am convinced that Plantronics will create long-term value for shareholders.
Logitech currently has a market capitalization of $5.6 billion and Plantronics is worth about $2 billion. In July, Plantronics completed the acquisition of collaboration specialist Polycom for 2 billion dollars, which means that it now offers the broadest portfolio of endpoints in Unified Communications and Collaboration (UCC), according to Plantronics.This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.