Logitech, Plantronics Drop Acquisition Plan

Computer and communication products company Logitech and unified communications firm Plantronics have dropped their plans for a possible acquisition. Both the firms, in separate announcements, have clarified that though they had entered into an initial discussion regarding the same, the plan has now been dropped.

“Logitech approached Plantronics regarding a potential acquisition and, consistent with the Plantronics Board’s fiduciary duties, the Company entered into discussions with Logitech. Those discussions have ended,” Plantronics said in a statement.

Earlier last week, there were media reports that Logitech, a Swiss firm may acquire Plantronics, a US manufacturer of Bluetooth headsets and gaming devices for around $2.2 billion.

Logitech also confirmed it was ‘engaged in discussions with Plantronics regarding a potential transaction.’

“However, those discussions were terminated,” the company said in a statement.

“Our combined organization of Plantronics and Polycom is working tirelessly to help our customers communicate, work, and play, wherever they are,” said Joe Burton, President and Chief Executive Officer, Plantronics, “Already the market leader in Unified Communications with the most comprehensive portfolio of communications and collaborations endpoints, our prospects are outstanding. We are working to reinvent the industry with valuable business insights available through unique software and analytics capabilities that span the entire portfolio of endpoints.”

If materialized, it would have been Logitech’s biggest ever acquisition. The company is planning to ramp up its video products portfolio including that of gaming, and Plantronics would have been a perfect fit. The company last year had acquired a video gaming company Astro for $85 million.

On the other hand, Plantronics, a nae synonymous with Bluetooth earpieces is going through a troubled times post its acquisition of Polycom for $2 billion last year. The company is also facing increased competition from much bigger firms like Google, Microsoft and Cisco in the audio-video conferencing and unified communication space.

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