Logitech Set To Acquire Jaybird For $50 Million
Logitech has announced that they have worked out a deal to acquire audio company Jaybird, famous for their active lifestyle earbuds. Logitech says that the deal is worth $50 million in cash with an additional $45 million available based on the achievement of growth targets over the next 2 years. At this point I’m sure you’re wondering why it is that Logitech, a computer peripherals maker, would be interested in an audio company, but the answer is simple, they just are. In all seriousness however, Logitech says that this deal primarily centers around trying to create the best ways for consumers to listen to audio in the best possible way in every situation.
Jaybird will remain as its own brand and the company and its employees will continue to have the freedom to develop and sell products in the same way they do now, just with Logitech’s help to take “everything further, faster”. The deal should come to a close within the next few weeks.
Logitech to Acquire Jaybird, Expanding into the Fast-growing Wireless Audio Wearables Market
NEWARK, Calif. and LAUSANNE, Switzerland, Apr. 12, 2016 — Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced that it has agreed to acquire Jaybird LLC of Salt Lake City, Utah, for approximately $50 million in cash, with an additional earn-out of up to $45 million based on achievement of growth targets over the next two years. Jaybird is a leader in wireless audio wearables for sports and active lifestyles, a category the company created in 2006.
Jaybird has pioneered premium wireless audio for sports through its focus on bringing music to active lifestyles. Their award-winning BlueBuds X and, more recently, X2 wireless buds enjoy a strong following among the active crowd. Whether their fans play on the slopes, on the court, in the gym, on the dirt or the pavement, they trust Jaybird to bring music to the experience.
Logitech does not expect the acquisition to materially impact its FY 2017 guidance, recently shared at the company’s Analyst and Investor Day in March. The acquisition is subject to customary closing conditions and is expected to close in the coming weeks.