Logitech International SA, which is a Swiss manufacturer of webcams and keyboards, is in discussion to acquire Plantronics Inc, which is a US maker of a Bluetooth earpieces and gaming headsets, according to a report.
The deal would going to be the far Logitech largest acquisition and would show the company push to diversify its business. It would come as a Logitech and Plantronics seek to keep down the manufacturing costs following the introduction of tariffs on imports from China into the US.
Logitech has offered around $2.2 Billion to acquire Plantronics, according to the report. According to the end of trading on Friday, Plantronics had a market capitalization of $2 Billion. If the negotiations prove to be successful, then a deal between the Plantronics and Logitech could come as early as by the next month only, cautioning that it would also be possible that no agreement would be reached.
Plantronics shares increased to 5.60% to $56.50 last Friday. Plantronics and Logitech businesses have been under pressure as a result of which both the new offerings being developed, not just from the network gear makers such as the Cisco System Inc, but also from the new major technology companies such as the Google owner Alphabet and Microsoft.
Logitech which was founded in 1981, has been countering declining sales of personal computers by focusing more on the consumer accessories that are benefiting from the growth of cloud computing such as the music, gaming, connectivity, smart home and video conferencing. It has a market capitalization of $5.6 Billion.
In 2017, Logitech acquired ASTRO gaming for $85 Million in cash deal to expand in the field of video gaming. Plantronics, which is a California makes a unified communication system, conferencing system, wireless headsets and some software which it sells to consumers and business. It has a market capitalization of $5.6 Billion.
Plantronics which is founded in 1961, its first product were lightweight headsets for the airline pilots. It was later known for selling the headsets to the NASA which includes the ones worn by Neil Armstrong during his first moonwalk in 1969.
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