Logitech Walks Away From Plantronics, Whose Year On Year Revenues Are Down
Logitech has walked away from a US$2.1 Billion dollar deal to buy Plantronics who are facing a margin squeeze in the consumer gaming market.
Logitech approached Plantronics whose revenues dropped last year by 2.75% regarding a potential acquisition those discussions have ended after the Swiss based Company conducted due dilligence.
Plantronics who were bragging recently of 215% growth in the Australian gaming market has admitted that competition in the gaming business is squeezing margins, they are also under pressure from a surging Jabra who are seen as having superior call centre, B2B and consumer headphones than Plantronics.
The Company which competes head on with Logitech did not identify the volume of goods sold to achieve the 215% growth.
On Friday, Reuters reported the maker of computer accessories had offered more than $2.2 billion for Plantronics, which makes headsets and other computer accessories. Logitech shares are down 3.6% year to date.
For the twelve months ended March 31st, 2018 vs March 31st, 2017, Plantronics reported revenue of $856.90MM vs $881.18MM this was down 2.75%.
For the quarter ending June 30th, 2018 vs June 30th, 2017, Plantronics reported revenue of $221.31MM vs $203.93MM (up 8.52%) however this was bolstered by their aquisition of Polycom.
Polycom Australia has not commented for this story.