(Reuters) – Logitech International SA, a Swiss keyboard and webcam manufacturer, discusses acquisition of Plantronics Inc, an American manufacturer of…
(Reuters) – Logitech International SA, a Swiss keyboard and webcam manufacturer, discusses acquisition of Plantronics Inc, an American manufacturer of Bluetooth earpieces and game heads. People who are familiar with the question said on Friday.
FIL PHOTO – CEO Bracken Darrell of the computer circuit manufacturer Logitech addresses the company’s annual press conference in Zurich, Switzerland on April 26, 201
7. REUTERS / Arnd Wiegmann
The deal would be the greatest Logitech’s largest acquisition and would illustrate the Company’s drive to diversify its business . It would come as Logitech and Plantronics strive to reduce manufacturing costs after the introduction of import duties from China to the United States.
Logitech has offered more than $ 2.2 billion to acquire Plantronics, says one of the aforementioned sources. At the close of trading on Friday, Plantronics had a market value of approximately $ 2 billion.
If the negotiations prove successful, an agreement between Logitech and Plantronics could come as early as next week, adding the sources, warn that it was also possible that no agreement would be reached.
The sources requested not to be identified because the negotiations are confidential. Logitech and Plantronics did not respond immediately upon request for comments.
Logitech and Plantronics companies have been under pressure as a result of new developments being developed not only from networking devices such as Cisco Systems Inc but also from major technology companies like Microsoft Inc. and Google owner Alphabet Inc.  Logitech was founded in 1981 and has counteracted reduced sales of personal computers by focusing on consumer accessories that benefit from the growth of cloud computing, such as games, music, smart home connectivity and video conferencing. The Lausanne-based company has a market value of $ 5.6 billion.
Last year, Logitech acquired ASTRO Gaming for $ 85 million in cash to expand in video games.
Santa Cruz, California-based Plantronics manufactures unified communication systems, wireless headsets, conference systems and certain software that it sells to businesses and consumers.
Founded in 1961, Plantronics first products were lightweight headset for airline pilots. It was later known to sell headsets to the National Aeronautics and Space Administration (NASA), including those used by Neil Armstrong during its first mooring in 1969.
Plantronics’s sales would hit the company’s $ 2 billion acquisition in July by the US video conferencing equipment manufacturer Polycom Inc.
The private equity company Siris Capital Group LLC owns 16 percent of Plantronics, making it its largest shareholder. Reuters had previously reported that Plantronics was investigating a sale.
(This story was denied to correct the 3rd paragraph to say … 2.2 billion dollars to acquire Plantronics … instead of … 2.2 billion to acquire Logitech)
Reporting by Liana B. Baker and Carl O & Donnell in New York; Further reporting by Greg Roumeliotis in New York; Editing Tom Brown
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