Logitech has ended its interest in acquiring US Bluetooth earpiece and gaming headsets manufacturer Plantronics, following initial reports of a takeover worth more than $2.2 billion.
In a statement, the computer peripherals manufacturer confirmed that it had been “engaged in discussions with Plantronics regarding a potential transaction” but “those discussions were terminated”.
The estimated $2.2 billion takeover deal would have made it Logitech’s largest acquisition to date, reports last week revealed, and would have dwarfed the tech firm’s $85 million acquisition of ASTRO Gaming last year.
Citing anonymous sources familiar with the matter, Reuters now reports that the two companies had been hoping to finalise negotiations this week - before the Logitech board decided to pull the plug on Sunday due to price disagreements.
Three separate sources close to the company explained that the termination came despite Plantronics having opened its books to Logitech on the basis of an offer that was “well in excess of $3 billion”.
In a separate statement, Plantronics confirmed that the deal was now off the table, adding that the business would continue to move forward as its own entity.
“I have been and remain tremendously optimistic about the opportunity in front of us, and with our focused strategy and leadership team, I am confident that Plantronics will create significant long term value for shareholders,” Plantronics Chief Executive Joe Burton said.
Earlier this year, Plantronics itself acquired video-conferencing equipment manufacturer Polycom in a deal worth $2 million – a likely factor in the steep valuation of the company in the failed Logitech deal.
