Logitech acquires Blue Microphones in $117 million deal
Logitech has acquired Blue Microphones in a deal designed to allow the company more access to a growing market.
On Monday, the computer accessories developer said in a blog post that the agreement will pave the way for a robust entry into the microphone market, a new arena for Logitech.
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The acquisition has been agreed for roughly $117 million in cash, assuming net working capital at close.
Founded in 1995, Blue Microphones is a well-known brand in the microphone industry. The firm's products range from microphones suitable for home users and available for a few hundred dollars to professional products that are investment pieces reaching thousands of dollars.
It is not only studios and live performers that may need to invest in good microphones; now that live streams, YouTubers, gamers, and content creators online have formed their own legitimate industry, Logitech -- together with its own range of PC peripherals -- is attempting to place itself at the helm to capitalize on the growing market.
"If you're not using a Blue mic, your go-to internet personalities probably are," Logitech says.
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"Logitech's acquisition of Blue Microphones will accelerate our entry into a growing market, and offers another way for us to help bring people's passions (from music to blogging) to life," says Bracken Darrell, Logitech CEO. "Joining with Blue is an adjacent opportunity for us -- a new way to grow -- with additional synergies related to our existing gaming, PC webcam and audio categories. It's exciting!"
Microphones are a new area for Logitech, but the rest of the kit required by home users and content creators -- such as keyboards and webcams -- are not.
While little is known when it comes to the internal agreements between the teams, Blue says that new products are in the pipeline.
"We both have strong brands in the gaming market," Blue added. "We make the most popular streaming mic, they make the most popular streaming cam. And we both want to put excellent, high-performance gear on every desktop."
Alongside the acquisition announcement, Logitech reported first-quarter 2019 financial results which included non-GAAP operating income of $61 million, an increase of grew 41 percent year-on-year. First quarter non-GAAP EPS was $0.34 per share, versus $0.24 year-on-year.
The company also reported sales of $608 million, up 12 percent at constant currencies in comparison to Q1 2018.
Logitech has raised its fiscal year 2019 outlook based on strong sales and the Blue Microphones acquisition to between $325 million and $335 million, up from previous estimates of $310 million to $320 million.