Logitech aims to cut down its manufacturing costs and regain market value with the supposed acquisition of Plantronics
(Courtesy – insperity.com)
Swiss electronics manufacturer, Logitech is, reportedly, in talks to acquire Plantronics, a US manufacturer of Bluetooth earpieces and gaming headsets, with over $2.2 billion. According to Reuters, the acquisition, if completed, will be the company’s largest one, thereby expanding its business.
Manufacturing cost cutting
The acquisition would also help in bringing down the two companies’ manufacturing costs after the introduction of import tariffs from China into the US. The companies have been facing tough competition from tech majors like Microsoft, Alphabet and Cisco Systems. The acquisition would help to regain the market value of the two firms.
Logitech acquisitions
The computer and mobile accessories maker has completed a few acquisitions over the past few months. In August, it acquired Blue Microphones, a US-based audio production firm that produces microphones, headphones, recording tools and more for gaming, streaming, podcasting, etc. It bought the firm for about $117 million. In 2017, it bought ASTRO Gaming for about $85 million to expand its business in the video game segment.
Logitech’s sales in the PC segment has been declining over the years, due to which, it is now focusing on venturing into cloud computing, such as gaming, music, smart home connectivity and video conferencing business segments. Its market capitalisation is of $5.6 billion.
Plantronics portfolio
Plantronics deals in unified communications systems, wireless headsets, conferencing systems and some software. It started with lightweight headsets for airline pilots and gradually expanded its portfolio by adding headsets that it sold to the National Aeronautics and Space Administration (NASA), including the ones worn by Neil Armstrong during his first moonwalk in 1969. Plantronics has a market capitalization of about $2 billion.
