Reuters reported Friday that Logitech is in discussions to acquire Plantronics, citing unnamed sources familiar with the matter. This would make the acquisition beneficial to both companies, as well as help Logitech keep up with increasing competition in the wireless headphone market.
In response to media reports and in accordance with Swiss disclosure requirements, Logitech today confirmed it was engaged in discussions with Plantronics regarding a potential transaction.
Reuters reported earlier this month that Plantronics was considering putting itself up for sale.
Logitech has been buying smaller companies in order to expand its portfolio.
The companies confirmed on Sunday the talks had happened, but also revealed they had now been terminated. Purchasing Plantronics will facilitate a lot for Logitech, mainly its lineup of PC and mobile accessories.
A sale of Plantronics would come on the heels of the company's $2 billion acquisition in July of USA video-conferencing equipment maker Polycom Inc.
"I have been and remain tremendously optimistic about the opportunity in front of us, and with our focused strategy and leadership team, I am confident that Plantronics will create significant long term value for shareholders". Maybe the pairing would present a formidable foe to IT giants like Cisco and Microsoft with a wide swath of product and service offerings, but we'll never know-or will we? According to the source, one of the reasons the two companies are eager to close the deal is to reduce manufacturing costs to counter the Chinese import tariffs. The company past year had acquired a video gaming company Astro for $85 million. Finally, Loop Capital raised their target price on shares of Logitech International to $53.00 and gave the company a "buy" rating in a research report on Wednesday, August 1st.