Logitech to Acquire Jaybird, Expanding Into the Fast-Growing Wireless Audio Wearables Market
April 12 2016 - 5:00PM
Business Wire
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.
This Smart News Release features multimedia.
View the full release here:
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Logitech today announced that it has
agreed to acquire Jaybird, a leader in wireless audio wearables for
sports and active lifestyles. (Photo: Business Wire)
“Logitech and Jaybird share a passion for products,” said
Bracken Darrell, Logitech president and chief executive officer.
“We’re impressed by the technology, products and marketing Jaybird
has brought to this business. As one team, we can address the
fast-growing wireless audio wearables market with all the
advantages of Jaybird’s strong brand and sports expertise, and our
combined audio engineering and design capabilities. With both the
Ultimate Ears and Jaybird brands in our portfolio, we are expanding
the long-term growth potential of our music business.”
Judd Armstrong, founder and chief executive officer of Jaybird,
said, “It has been an incredible journey. We love what we
do, and we’re stoked to continue to innovate and bring amazing new
products to our fans. Jaybird will benefit from Logitech’s global
distribution network and deep engineering prowess. We’ve watched as
they’ve connected incredible products with passionate consumers
under the UE brand, and we’re thrilled to be part of the team.”
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.
Jaybird was provided financial advice exclusively by Stifel
throughout the acquisition process.
About Logitech
Logitech designs products that have an everyday place in
people's lives, connecting them to the digital experiences they
care about. Over 30 years ago Logitech started connecting people
through computers, and now it’s designing products that bring
people together through music, gaming, video and computing, so they
can create, achieve and enjoy more. Founded in 1981, Logitech
International is a Swiss public company listed on the SIX Swiss
Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI). Find
Logitech at www.logitech.com, the company blog or @Logitech.
This press release contains forward-looking statements within
the meaning of the U.S. federal securities laws, including, without
limitation, statements regarding: growth in wireless audio
wearables market, growth in the long-term growth potential of our
Music business, global distribution and innovation of Jaybird
products, fiscal year 2017 sales growth and operating income, and
the timing of closing the acquisition. These statements are subject
to risks and uncertainties that may cause actual results and events
to differ materially, including without limitation: if our product
offerings, marketing activities and investment prioritization
decisions do not result in the sales, profitability or
profitability growth we expect, or when we expect it; the demand of
our customers and our consumers for our products and our ability to
accurately forecast it; if we fail to innovate and develop new
products in a timely and cost-effective manner for our new and
existing product categories; if we do not successfully execute on
our growth opportunities in our new product categories or our
growth opportunities are more limited than we expect; if sales of
PC peripherals are less than we expect; the effect of pricing,
product, marketing and other initiatives by our competitors; if our
products and marketing strategies fail to separate our products
from competitors’ products; if we do not fully realize our goals to
lower our costs and improve our operating leverage; if there is a
deterioration of business and economic conditions in one or more of
our sales regions or product categories, or significant
fluctuations in exchange rates. These risks and uncertainties are
detailed in Logitech’s filings with the Securities and Exchange
Commission, including its Quarterly Report on Form 10-Q for the
fiscal quarter ended December 31, 2015 and its Annual Report on
Form 10-K for the fiscal year ended March 31, 2015, available at
www.sec.gov, under the caption Risk Factors and elsewhere. Logitech
does not undertake any obligation to update any forward-looking
statements to reflect new information or events or circumstances
occurring after the date of this press release.
2016 Logitech, Logicool, Logi and other Logitech marks are owned
by Logitech and may be registered. All other trademarks are the
property of their respective owners. For more information about
Logitech and its products, visit the company’s website at
www.logitech.com.
(LOGIIR)
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version on businesswire.com: http://www.businesswire.com/news/home/20160412006762/en/
Logitech InternationalJoe GreenhalghVice President, Investor
Relations – USA510-713-4430Krista ToddVice President, External
Communications – USA510-713-5834Ben StarkieCorporate Communications
– Europe+41-(0) 79-292-3499
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