Will Logitech Spend More Than $2 Billion To Acquire Plantronics

Logitech is a Sweden-based technology manufacturer who makes peripherals like computer keyboards and webcams.  Just this week they made an announcement over their plans to expand that lineup through a $2.2 billion acquisition of Plantronics. Should they move forward, this would be the largest deal Logitech ever composed. Just last year, Logitech completed its $85 million (in cash) acquisition of Astro Gaming.

Now, the size of this particular acquisition would definitely speak to the company’s desire to diversify their market offerings. It would also come at a time when both Plantronics and Logitech are looking to reduce manufacturing costs now that we have new tariffs on Chinese imports.

Also, both Logitech and Plantronics have recently felt some pressure from new products emerging today.  And this pressure comes not necessarily from small, fast-moving companies, but also industry bigwigs like Cisco Systems, Microsoft, and Alphabet (Google’s parent company).

For this deal, Logitech has offered Plantronics more than $2.2 billion.  As of market close at the end of the week, Plantronics had a market capitalization of nearly $2 billion.

If the two companies can successfully negotiate, analysts say we could expect to see the deal in just a few days. Of course, they also say that there is no indication as to whether or not they are close to reaching an agreement.

Logitech was founded in 1981 and is based in Lausanne. They focus on personal computing technology and accessories. They have a market capitalization of $5.6 billion but have been struggling of late because of other shifts in the technology sector, including cloud computing, music, gaming, video conferencing, and smart home connectivity.

Plantronics was founded in 1961 and is based in Santa Cruz, California.  They design and manufacture unified communications systems, conferencing systems, and wireless headsets. The US-based technology firm manufactures Bluetooth earpieces and gaming headsets.  They also develop software, which they sell directly to businesses and consumers. Plantronics’ biggest claim to fame is developing proprietary headsets that the National Aeronautics and Space Administration (NASA), and that includes the headset Neil Armstrong was wearing during the inaugural moonwalk, in 1969.