According to Reuters, Logitech, a keyboard and webcam manufacturer, is in talks to acquire Plantronics, which makes earpieces, headsets, and other Bluetooth-oriented devices. Plans for this potential acquisition come as both company’s work to keep manufacturing costs low following the tariffs placed on imports from China to the U.S.
If the deal goes through, this will be Logitech’s “largest acquisition,” and an evident demonstration of the company’s goal to “diversify its business.” Reuters reports, “Logitech has offered more than $2.2 billion to acquire Plantronics…[which] had a market capitalization of about $2 billion.” Neither business is commenting on the deal.
Even before tariffs were put in place, both Logitech and Plantronics have “been under pressure as a result of new offerings being developed” by key competitors, including Cisco System Inc., Microsoft Inc., and Alphabet Inc., Reuters says. Separately, Logitech seems to have been treading water for over 30 years: “Founded in 1981, Logitech 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.”
Whether or not a deal is made between Logitech and Plantronics, decision makers might recognize that acquisitions like this aren’t new to the industry, and won’t be stopping any time soon, either. For example, Plantronics just acquired U.S. videoconferencing company Polycom for $2 billion this past July, Reuters says.
However, the strategic decisions behind why a company acquires another may change, especially as political moves ebb and flow, including additional tariffs and conflicts with the Federal Communications Commission, and cyberattacks increasing. As a result, decision makers manning companies that are considering an acquisition might consider pulling lessons from businesses that have already gone through it, including Logitech itself – for example, in 2017, “Logitech acquired ASTRO Gaming for $85 million in cash to expand in the video game sector,” Reuters says. Despite tariffs and other limitations, and already handing over a hefty chunk of chance for ASTRO Gaming, Logitech is still in decent standings to go for Plantronics. By watching the mistakes and successes of other companies, and even keeping tabs on who’s buying who in a specific industry, decision makers are able to decipher which plans, calls to action, and strategies will help their companies take the smartest steps to a successful acquisition.