Why it matters: Logitech, renowned for their selection of gaming and non-gaming peripherals, has had a tough six months with their shares dropping by almost 20%. In an effort to improve sales and stymie the success of rivals like Corsair and Razer, Logitech was in negotiations to purchase headphone maker Plantronics for $2.2 billion.
Update (11/25): A Logitech spokesperson has contacted us to confirm they are no longer in acquisition discussions with Plantronics. The full statement reads: "In response to media reports and in accordance with Swiss disclosure requirements, Logitech International today confirmed it was engaged in discussions with Plantronics regarding a potential transaction. However, those discussions were terminated. Logitech does not intend to comment further."
An anonymous source told Reuters that the negotiations are well underway and that the deal could close as early as next week. 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.
Despite Logitech’s recent acquisition rampage of companies like Astro Gaming and Blue Microphones, Plantronics would be Logitech’s largest acquisition yet. Plantronics’ market cap is over a third of Logitech’s $5.6 billion.
California-based Plantronics may be known for the Rig series headsets among gamers, but they have a very rich history dating back to 1961 when they began making lightweight headsets for pilots. They were so successful that they began to provide headsets for NASA, and Neil Armstrong was using one when he went on the first moonwalk in 1969.
Neither Logitech nor Plantronics have commented on the rumors.