Logitech May Acquire Plantronics in Record $2.2 Billion Deal

By Nitish Singh / November 25, 2018

In a bid to cut down on manufacturing costs and tariffs, Logitech may acquire Plantronics in a high-profile deal. Logitech is one of the leading computer peripherals manufacturers globally and manufactures products in a range of segments. Plantronics, on the other hand, is widely known for its wireless headphones and audio peripherals. The potential business deal will be Logitech’s largest acquisition in the company’s history, and it will also allow the company to focus on wireless headphones, a segment it has not fully broken into yet.

Logitech's previous biggest deal was the acquisition of ASTRO Gaming for $85 million. The company has designed a number of wireless peripherals in the past including speakers, mice, keyboards and more and the addition of Plantronics’ technology into the pool means that we can expect wireless audio hardware from Logitech to have hassle-free desktop setups.

With all imports from China to the United States now incurring an import, manufacturing costs are creeping up for a large number of manufacturers considering how important China is to global manufacturers due to the cheap labor and cost-effective factories. The introduction of tariffs may be a part of USA’s plan to restrict the use of Chinese products in the country.

According to reports, the Logitech and Plantronics deal is yet to be finalized, and it may fall apart as well depending on how negotiations proceed between both parties. If the deal is successful Logitech may compete against the likes of Bose, Sony and other major players in the Bluetooth audio peripherals market. Apple is also set to make a return into the segment according to industry rumors. The tech giant had acquired Beats in 2014, but there have been no notable Apple-branded audio hardware releases in the past few years.

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