Exclusive: Logitech Negotiations to Acquire Plantronics Helmet Manufacturer – Sources

(Reuters) – Logitech International SA, a Swiss manufacturer of keyboards and webcams, is in talks to acquire Plantronics Inc, a US manufacturer of Bluetooth headphones and Bluetooth headphones, experts said Friday.

The acquisition would be by far the largest acquisition of Logitech and illustrate the company's efforts to diversify its operations. This would occur as Logitech and Plantronics seek to reduce their manufacturing costs following the introduction of tariffs on imports from China to the United States.

Logitech has offered more than $ 2.2 billion to acquire Plantronics, said one of the sources. At the end of trading on Friday, Plantronics had a market capitalization of about $ 2 billion.

If negotiations succeed, an agreement between Logitech and Plantronics could be reached as early as next week, sources said, warning that it was also possible that no agreement was reached.

The sources asked not to be identified because the negotiations are confidential. Plantronics declined to comment, while Logitech did not respond to a request for comment.

Plantronics shares jumped 5.6% to $ 56.50 after 7 pm, trading in New York on Friday.

The activities of Logitech and Plantonics are under pressure following the development of new offerings, not only from network gearmakers such as Cisco Systems Inc, but also from large technology companies such as Microsoft Inc and Alphabet, the owner from Google

Founded in 1981, Logitech's attack on declining sales of personal computers focusing on consumer-friendly accessories benefiting from the growth of cloud computing, such as gaming, music, smart home connectivity and the video conference. The Lausanne company has a market capitalization of 5.6 billion dollars.

Last year, Logitech acquired ASTRO Gaming for $ 85 million in cash in order to grow in the video game industry.

Plantronics, based in Santa Cruz, California, manufactures unified communications systems, wireless headsets, conferencing systems, and some software that it sells to businesses and consumers.

Founded in 1961, the first products of Plantronics were lightweight helmets for airline pilots. He then became known for selling helmets to NASA, including those worn by Neil Armstrong at his first moonwalk in 1969.

A sale of Plantronics follows the acquisition of US $ 2 billion worth of video conferencing equipment by Polycom Inc. in July.

The private equity firm Siris Capital Group LLC holds a 16% stake in Plantronics, making it its largest shareholder. Reuters announced earlier this month that Plantronics was considering a sale.