Logitech in talks to acquire headphone maker Plantronics

LOGITECH International SA, a Swiss manufacturer of keyboards and webcams, is in discussions to acquire Plantronics Inc, a US maker of Bluetooth earpieces and gaming headsets, people familiar with the matter said.

The deal would be by far Logitech’s largest acquisition and would illustrate the company’s push to diversify its business. It would come as Logitech and Plantronics seek to keep down manufacturing costs following the introduction of tariffs on imports from China into the United States.

Logitech has offered more than US$2.2 billion to acquire Plantronics, one of the sources said. As of the end of trading on Friday, Plantronics had a market capitalisation of about US$2 billion. If the negotiations prove successful, a deal between Logitech and Plantronics could come as early as next week, the sources said, cautioning that it was also possible that no agreement would be 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 per cent to US$56.50 on the news in after hours trading in New York on Friday. Logitech’s and Plantronics’ businesses have been under pressure as a result of new offerings being developed, not just from network gear makers such as Cisco Systems Inc, but also from major technology companies such as Microsoft Inc and Google owner Alphabet Inc.

Founded in 1981, Logitech has been countering declining sales of personal computers by focussing on consumer accessories that are benefiting from the growth of cloud computing, such as gaming, music, smart home connectivity and video conferencing.