Naked as a Jaybird no longer, the U.S. audio wearable maker is now decked out in around $50 million in cash thanks to an acquisition by Swiss consumer electronics giant Logitech. On top of that, Jaybird could earn an additional $45 million if it hits Logitech’s growth targets over the next two years.
Gadgets360 reported the Jaybird acquisition, which Logitech says will allow it to jumpstart its offerings for the audio wearables segment without having to build products of this kind from the ground up. Headquartered in Salt Lake City, Jaybird specializes in making audio wearables for athletes and other active consumers and has developed a strong brand which Logitech says it will not phase out.
“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,” said President and CEO of Logitech Bracken Darrell. “We’re impressed by the technology, products and marketing Jaybird has brought to this business.”
“With both the Ultimate Ears and Jaybird brands in our portfolio, we are expanding the long-term growth potential of our music business,” added Darrell.
Jaybird now positions Logitech for audio products market?
Gadgets360 speculated that the Jaybird acquisition will position Logitech as a leader in the increasingly competitive segment focused on USB and wireless powered audio products. This comes amidst rumors of several Android makers phasing in the USB Type-C specification and Apple eliminating the 3.5mm jack on the next generation of iPhones.
Currently, the Swiss firm is best known for its wireless Bluetooth-enabled peripherals, smart home devices and virtual meeting products.
“Jaybird will benefit from Logitech’s global distribution network and deep engineering prowess,” said Jaybird founder and CEO Judd Armstrong.
In a media release, Logitech said that it didn’t anticipate the Jaybird deal will materially impact its guidance for the 2017 fiscal year.