NEWARK, Calif. & LAUSANNE, Switzerland--(BUSINESS WIRE)--
Logitech
International (SIX: LOGN) (Nasdaq: LOGI) today announced that it has
agreed to acquire ASTRO
Gaming, a leading console gaming brand with a history of producing
award-winning headsets for professional gamers and enthusiasts. Logitech
and ASTRO, together, is the number one maker of headsets, mice,
keyboards and streaming webcams for PC and console gamers.
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Logitech has agreed to acquire ASTRO Gaming, a leading console gaming brand with a history of producing award-winning headsets for professional gamers and enthusiasts. Logitech and ASTRO, together, is the number one maker of headsets, mice, keyboards and streaming webcams for PC and console gamers. (Photo: Business Wire)
"ASTRO is the leading player for premium console headsets and is the
preferred headset for console esports athletes," said Ujesh Desai, vice
president and general manager of Logitech G. "It's a perfect complement
to Logitech G's focus on PC gaming and we couldn't be more excited; we
love the team, the brand and the products. Together, we want to make
game play even more fun for gamers everywhere."
Jordan Reiss, co-founder and president of ASTRO, added, “The whole team
at ASTRO has always held Logitech and Logitech G products in the highest
regard, so I’m ecstatic we are joining forces. ASTRO’s brand strength
combined with Logitech G's unrivaled technology and global distribution
network is going to bring our products to even more gamers around the
world.”
ASTRO, is a pioneer in gaming audio and lifestyle products and has a
strong leadership position in the premium end of the global console
gaming headset market. ASTRO is best known for its iconic A40 and A50
headsets designed for pro gamers and core enthusiasts. ASTRO’s recently
introduced A10 expands the company’s reach in the console headset
market, offering the essence of what makes their headsets premium, but
at a more broadly accessible price point.
Expected impact on financial results for Fiscal Year 2018
Logitech will purchase ASTRO for $85 million in cash, and the
acquisition is expected to close in early August. With the addition of
ASTRO, we’re investing in an adjacent gaming market — the console gaming
market — to help accelerate the long-term growth of our gaming business.
In FY 2018, we expect the acquisition of ASTRO to add approximately two
points of growth to the top line, and to be slightly dilutive to the
bottom line in the first year, as we integrate the business and invest
to expand ASTRO internationally.
About Logitech
Logitech designs products that have an everyday place in people's lives,
connecting them to the digital experiences they care about. More than 35
years ago, Logitech started connecting people through computers, and now
it’s a multi-brand company designing products that bring people together
through music, gaming, video and computing. Brands of Logitech include Jaybird,
Logitech
G and Ultimate
Ears. Founded in 1981, and headquartered in Lausanne, Switzerland,
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.
About Logitech G
Logitech G, a brand of Logitech International, is the global leader in
PC gaming gear. Logitech G is dedicated to providing gamers of all
levels with industry leading keyboards, mice, headsets, mousepads and
simulation products such as wheels and flight sticks - made possible
through innovative design, advanced technologies and a deep passion for
gaming. Founded in 1981 and headquartered in Lausanne, Switzerland,
Logitech International is a Swiss public company listed on the SIX Swiss
Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI). Find
Logitech G at www.LogitechG.com,
the company
blog or @LogitechG.
This press release contains forward-looking statements within the
meaning of the federal securities laws, including, without limitation,
statements regarding: sales, distribution, and market penetration of
Logitech G and ASTRO gaming products; the purchase price, closing and
timing of the closing of the ASTRO acquisition; long-term growth and the
pace of growth of Logitech’s gaming business; and the expected impact on
Logitech’s financial results for fiscal year 2018. The forward-looking
statements in this release involve risks and uncertainties that could
cause Logitech's actual results and events to differ materially from
those anticipated in these forward-looking statements, 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 or our growth opportunities are more limited than
we expect; the effect of pricing, product, marketing and other
initiatives by our competitors, and our reaction to them, on our sales,
gross margins and profitability; 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 operating segments, or
significant fluctuations in exchange rates; the effect of changes to our
effective income tax rates. A detailed discussion of these and other
risks and uncertainties that could cause actual results and events to
differ materially from such forward-looking statements is included in
Logitech's periodic filings with the Securities and Exchange Commission,
including our Annual Report on Form 10-K for the fiscal year ended March
31, 2017, 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.
2017 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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Source: Logitech International