Logitech on Tuesday announced it has agreed to acquire Salt Lake City-based Jaybird for approximately $50 million in cash. The company in a press statement added that an additional earn-out of up to $45 million is planned "based on achievement of growth targets over the next two years."
Jaybird is best known for its wireless audio wearables, focused on athletes and other active users. The acquisition will help Logitech cater to the wireless audio wearables market, rather than develop such products from scratch. The move is also being speculated to help the company be a frontrunner in the race for wireless and USB powered audio products, what with rumours of Apple doing away with the 3.5mm jack on its next iPhone, and several Android manufacturers adopting the USB Type-C specification. Logitech said it will not phase out the Jaybird brand.
"Logitech and Jaybird share a passion for products," said Bracken Darrell, Logitech President and CEO. "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," he added.
Judd Armstrong, Founder and CEO of Jaybird, said of the acquisition, "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."In its press statement, Logitech added that it does not expect the acquisition to materially impact its FY2017 guidance, and added that the buyout is subject to customary closing conditions but is expected to close in the "coming weeks."