Logitech to Acquire Jaybird, Expanding into the Fast-growing Wireless Audio Wearables Market
NEWARK, Calif. and LAUSANNE, Switzerland, Apr. 12, 2016 — 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.
“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.
Logitech announced Tuesday that it has agreed to acquire Jaybird for $50 million in cash, and up to $95 million if certain targets are met over the next couple of years.
In a blog post, Logitech explains “the way we consume music has changed radically over the past decade and will continue to do so as we look to the future.” We’ve already seen Logitech make a big jump into audio with its purchase of Ultimate Ears. UE has a respectable following in the professional musician landscape with its custom/form fitted equipment as well as a consumer line of products including funky colored bluetooth speakers.
It appears that Logitech is attempting to make a stronger push into the consumer audio business by trying to capture the various segments of the market. Pro, consumer, and weekend warriors can look to the Logitech umbrella of products to satisfy their auditory needs.
Jaybirds is arguably one of the more popular options for athletes looking for Bluetooth headphones/earphones. It makes a lot of sense on Logitech’s part to pick up a strong player in the segment rather than invest a bunch of money on R&D and marketing to build up or pivot a brand.
Logitech states it will keep Jaybird’s brand separate from Logitech, much like it has done with Ultimate Ears.