After the Reuters report on last Friday about the acquisition talks between Logitech and Plantronics, companies on Sunday announced the conclusion of discussion to acquire Plantronics which remained unsuccessful.
Switzerland based Logitech International SA is a maker of webcams and keyboards was interested to acquire the U.S. based gaming headsets and Bluetooth earpieces manufacturer, Plantronics Inc.
On Sunday, both companies have confirmed the conclusion of negotiating talks.
Corresponding to its fiduciary obligations, Plantronics remained engaged in discussion with Logitech for potential acquisition, as it has come up to the Plantronics, narrated Plantronics in its statement. It also added to be remained delivering by sticking with its strategy of stand-alone company.
People familiar with the matter revealed that before the decision to quit negotiations, taken by Logitech’s board on Sunday, both companies were hoping a successful conclusion. On the basis of an offer of far more than $3 billion by Logitech and despite opening of its books to Logitech by Plantronics, negotiations had been finished by Logitech after disagreement with Plantronics over its price. At the close of market on last Friday when negotiations between both the companies started, Plantronics was standing at $2 billion worth of market capitalization.
In the midst of driving its business from computer attachments to be more diversified, so far that would have been the largest acquisition deal by Logitech. On Chinese products to be imported to United States, after the imposition of tariffs, the successful deal would have come to reduce manufacturing costs for Plantronics and Logitech.
Increasing new offerings not only by the devices maker Cisco but also from technology giants like Google and Microsoft has been putting the business of Plantronics and Logitech under pressue
With its current market capitalization worth of $5.6 billion, Logitech remained involved in personal computer but the declining sales drive it towards the consumer accessories associated with the smart home connectivity, music, video conferencing and gaming.