Logitech acquires wireless headphone manufacturer Jaybird
April 15, 2016 11:04 AM
Swiss computer and consumer electronics manufacturer Logitech International this week announced an agreement to acquire Jaybird LLC, a manufacturer of Bluetooth earbuds and other wireless audio accessories. The deal will be worth approximately $50 million in cash with another $45 million payout possible based on predetermined growth targets over the next two years, the company says.
Jaybird, No. 995 in the Internet Retailer 2015 Second 500 Guide, launched its own e-commerce site in 2008 selling wireless headphones and other Bluetooth-accessible audio products designed for athletic use. It reported web sales of just over $1.8 million in 2014 and about $3.4 million in 2013. Jaybird says it attracted an average of about 223,000 visitors to its website, Jaybird.com, in 2014.
“Logitech and Jaybird share a passion for products,” says Bracken Darrell, Logitech president and CEO. “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.” Logitech acquired headphone maker Ultimate Ears in 2008.
Logitech distributes its products in more than 100 countries through retail channels or via partnerships with computer makers and sells them on its own e-commerce site, Logitech.com. Logitech expects the Jaybird deal to close in the next few weeks and says it does not expect the acquisition to substantially impact the 2017 fiscal year guidance the company recently provided at its March investor day.
Through the first nine months of fiscal 2016, ended Dec. 31, Logitech reported net sales of $1.59 billion. It does not break out e-commerce sales.