Computer peripheral company Logitech has today announced that it is acquiring popular audio company Jaybird. Jaybird, for those unfamiliar, has released a variety of headphone products over recent years, most of which have been wireless. Logitech says the deal is worth $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.
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In a press release and on its official blog, Logitech said that the reason for the acquisition primarily centers around creating the best possible way for consumers to listen to music in every situation. Logitech’s Rory Dooley wrote the following in a blog post revealing the acquisition:
The way we consume music has changed radically over the past decade and will continue to do so as we look to the future. Music now goes with us everywhere and as both a shared or solitary experience, it can be integrated into pretty much all aspects of our daily lives thanks to the type of products that both UE and Jaybird have been inventing and commercializing over the last few years.
Furthermore, Logitech says that Jaybird will still be a separate brand and that the Jaybird team will be able to design and release its own products in the same way that it has been doing all along. Logitech says that it will simply help Jaybird take “everything further, faster.”
The deal is of course subject to the traditional conditions and approval, but is expected to close in the coming weeks.
Logitech’s acquisition of Jaybird comes two months after ZAGG announced plans to acquire popular power accessory company Mophie. That deal was worth $100 million. Last September, Incipio announced that it was acquiring fellow case manufacturer Incase for an undisclosed amount.
Full press release below:
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.