The popular Swiss manufacturer of keyboards and webcams, Logitech is reportedly in talks to acquire and take over a U.S. maker of Bluetooth earpieces and gaming headsets known as Plantronics.
If the deal goes through, it would be 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.
For this purpose, the company has offered more than $2.2 billion to acquire Plantronics as stated by a source. Plantronics had a market capitalization of about $2 billion.
If the acquisition is confirmed, a deal between Logitech and Plantronics could come as early as next week, cautioning that it was also possible that no agreement would be reached.
Plantronics shares jumped 5.6% to $56.50 on the news in after-hours trading in New York. Logitech’s and Plantonics’ businesses have been under pressure as a result of new offerings being developed, not just from network gear makers such as Cisco Systems, but also from major technology companies such as Microsoft and Google owner Alphabet.
The company founded in 1981 and has been countering declining sales of personal computers by focusing on consumer accessories that are benefiting from the growth of cloud computing, such as gaming, music, smart home connectivity and video conferencing.
On the other hand, Plantronics was founded in 1961 and its first products were lightweight headsets for airline pilots. It later became known for selling headsets to the National Aeronautics and Space Administration (NASA), including the ones worn by Neil Armstrong during his first moonwalk in 1969.