Categories Earnings, Finance, Technology

Logitech drops plans to acquire Plantronics

Logitech International SA (LOGI) dropped its plans to acquire Plantronics Inc. (PLT) over price issues, according to a report by Reuters. Both companies held discussions and although the initial price was $2.2 billion, Logitech was said to have offered more than $3 billion. Logitech decided to abandon the proposal after failing to reach an agreement on the final price.

logitech drops plans to acquire plantronics
(Image Courtesy: Ximonic, Simo Rasanen/Wikimedia Commons)

Logitech manufactures keyboards and other computer accessories and has a market value of $5.6 billion. This acquisition would have been Logitech’s biggest one so far and would have helped in expanding its business into other product offerings. Cloud computing has been gaining momentum and this has benefited Logitech’s computer peripherals business.

During its most recent quarter, Logitech posted a 9% increase in sales and a 15% increase in EPS. The company saw healthy growth in its gaming, video collaboration and PC peripherals businesses.

Plantronics, a maker of headsets and other audio communication devices, will now focus on solidifying its performance as a standalone company. In its most recent quarter, Plantronics generated $483 million in net revenues, which benefited from the Polycom acquisition that was completed in July.

Cisco stock gains after Q1 results beat on broad-based growth

Both Logitech and Plantronics have been facing tough competition from several major technology companies like Cisco (CSCO) and Microsoft (MSFT). The deal would have helped both companies in broadening their product offerings and in lowering manufacturing costs.

Logitech’s stock was up 2.6% in premarket trading on Monday while Plantronics’ shares dropped over 6%.

 

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top