Both Logitech and Plantronics have denied a report that the former is to acquire the latter in a deal valued at $2.2 billion, admitting that discussions were taking place but stating that they will go no further.
Newswire Reuters reported late last week that peripherals specialist Logitech was to acquire audio specialist Plantronics, best known for its enterprise-grade headset and hands-free hardware found in call centres and offices around the world, for more than $2.2 billion - a rough 10 percent premium on the latter company's market capitalisation and representing the largest acquisition in Logitech company history.
Both companies declined to comment on Reuters' report prior to its publication, with the outlet relying on the word of anonymous sources 'familiar with the matter'. Post-publication, however, both companies broke their silence - a requirement under Swiss disclosure regulations, in which companies must issue comment on press reports which can have a financial impact - to confirm that while talks had taken place there is to be no such acquisition, for reasons not stated.
'In response to media reports and in accordance with Swiss disclosure requirements, Logitech International today confirmed it was engaged in discussions with Plantronics regarding a potential transaction,' Logitech's brief statement reads. 'However, those discussions were terminated. Logitech does not intend to comment further.'
Plantronics, too, confirmed the talks and that they have gone nowhere. 'Our combined organization of Plantronics and Polycom is working tirelessly to help our customers communicate, work, and play, wherever they are,' claimed Joe Burton, president and chief executive officer of Plantronics, in a statement clearly designed to mollify investors. 'Already the market leader in unified communications with the most comprehensive portfolio of communications and collaborations endpoints, our prospects are outstanding. We are working to reinvent the industry with valuable business insights available through unique software and analytics capabilities that span the entire portfolio of endpoints.'
Plantronics' shares had dropped 1.55 percent in pre-market trading, nearly wiping out a 1.58 percent gain on market close; Logitech's share price is up 4.67 percent on the announcement that the acquisition would not be going ahead.
March 25 2020 | 14:00