Logitech International (Nasdaq: LOGI) has agreed to acquire SightSpeed Inc., a Berkley, Calif.-based provider of Internet video chat and voice calling solutions. The deal is valued at $30 million in cash, and is expected to close early next month. SightSpeed raised around $1 million from The Roda Group in 2003.
Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced that the company has agreed to acquire privately held SightSpeed Inc. of Berkeley, Calif. for approximately $30 million in cash. SightSpeed is an award-winning provider of high-quality Internet video communications services. The acquisition is subject to customary closing conditions and is expected to close in early November.
The acquisition of SightSpeed will provide Logitech with video calling technology and a software and services development team that can be focused on future video calling initiatives that can enable cross-platform video communications with an intuitive, lifelike experience, for people sitting in front of a personal computer or with their family in a living room.
“With this acquisition, we are significantly augmenting our current video R&D resources to help us move more quickly toward our goals for video services that complement the way people socialize, communicate and enjoy entertainment,” said Junien Labrousse, executive vice president of Logitech’s Products group.
“According to our research, there is a large untapped market of people who want to communicate with friends and family using video. But they want it to be integrated into their family lifestyle, which means going beyond the PC. We believe with SightSpeed we can help create the next wave of video communications enthusiasts.”
Founded in 2001, SightSpeed has approximately 25 employees. The company’s management team includes technology leaders with backgrounds in Internet services and software technology development. The SightSpeed services are based on SIP (Session Initiation Protocol), a standard that enables the services to be interoperable with other Internet communication services.
Impact on Financial Results for Current Fiscal Year
The impact of the acquisition on Logitech’s current fiscal year results is not expected to be material.
Logitech is a world leader in personal peripherals, driving innovation in PC navigation, Internet communications, digital music, home-entertainment control, gaming and wireless devices. Founded in 1981, Logitech International is a Swiss public company listed on the SIX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI).