Logitech Has Decided to Terminate Acquisition Negotiations with Plantronics
Last updated May 23, 2021
- As reported by Reuters last week, Logitech was set to acquire Plantronics.
- The deal will not be happening according to an official statement by Logitech, despite widespread rumors.
- The official statement reveals that despite negotiations, both parties could not come to strike a deal.
The Internet was abuzz with reports of Logitech being in talks with Plantronics about an acquisition. Many analysts had predicted that Logitech wanted to save on manufacturing costs and import tariffs. However, an official statement by the company revealed that its negotiations with Plantronics were not successful and the acquisition will not be happening at this moment.
Reports stated that Logitech would be paying more than $2.2 billion to Plantronics, which would be the biggest business acquisition for the peripheral manufacturer in its history. The valuation of $2.2 billion does not include Plantronics’ technology and resources in audio hardware alone. Plantronics had recently branched out to video conferencing solutions through its acquisition of Polycom for $2 billion.
After widespread reports suggested the deal is happening, Logitech revealed that “while it had engaged in discussions with Plantronics about a potential transaction, it had terminated the negotiations.”
The business move would be highly beneficial for Logitech as the manufacturer is currently incurring additional tariffs for its imports from China. The tariff was implemented under the Trump administration. With the US government discouraging the use of Chinese technology, especially from companies that are known to be partnered by the government of China, US manufacturers that import components or have factories based in China are now incurring additional costs.
Many analysts had predicted that Logitech would leverage Plantronics’ technology and expertise in the wireless audio peripherals market and compete against the likes of Sennheiser, Sony, Bose and other behemoths in the industry. However, with the acquisition not taking place, it is unknown if we can expect more wireless headsets from the manufacturer.
What do you think about the deal between Logitech and Plantronics not falling in place? Let us know in the comments below. Visit TechNadu on Facebook and Twitter to get the latest news first!
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