Logitech makes some really nice gaming gear that we’ve had the chance to review here on Techaeris. Now the company is plunking down a cool $85 million USD on one of the leading premium console headset makers on the market, ASTRO. This should bolster Logitech’s position in the industry and give them plenty of really nice SKUs to offer up to its customers. Logitech says the purchase of ASTRO will help accelerate the expansion of Logitech G’s existing PC gear into the console space. Both companies believe the purchase is an excellent fit saying that both Logitech and ASTRO have a passion for design and a love for gaming. An interesting purchase for certain, read the full press release below.
FULL PRESS RELEASE
Logitech to Acquire ASTRO Gaming, Adding Console Gaming Headsets to its Position as the #1 Maker of PC Gaming Gear
NEWARK, Calif. and LAUSANNE, Switzerland, July 11, 2017 — Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced that it has agreed to acquire ASTRO Gaming, a leading console gaming brand with a history of producing award-winning headsets for professional gamers and enthusiasts. Logitech and ASTRO, together, is the number one maker of headsets, mice, keyboards and streaming webcams for PC and console gamers.
“ASTRO is the leading player for premium console headsets and is the preferred headset for console esports athletes,” said Ujesh Desai, vice president and general manager of Logitech G. “It’s a perfect complement to Logitech G’s focus on PC gaming and we couldn’t be more excited; we love the team, the brand, and the products. Together, we want to make gameplay, even more, fun for gamers everywhere.”
Jordan Reiss, co-founder, and president of ASTRO added, “The whole team at ASTRO has always held Logitech and Logitech G products in the highest regard, so I’m ecstatic we are joining forces. ASTRO’s brand strength combined with Logitech G’s unrivaled technology and global distribution network is going to bring our products to even more gamers around the world.”
ASTRO is a pioneer in gaming audio and lifestyle products and has a strong leadership position in the premium end of the global console gaming headset market. ASTRO is best known for its iconic A40 and A50 headsets designed for pro gamers and core enthusiasts. ASTRO’s recently introduced A10 expands the company’s reach in the console headset market, offering the essence of what makes their headsets premium, but at a more broadly accessible price point.
Expected impact on financial results for Fiscal Year 2018
Logitech will purchase ASTRO for $85 million in cash, and the acquisition is expected to close in early August. With the addition of ASTRO, we’re investing in an adjacent gaming market — the console gaming market — to help accelerate the long-term growth of our gaming business. In FY 2018, we expect the acquisition of ASTRO to add approximately two points of growth to the top line, and to be slightly dilutive to the bottom line in the first year, as we integrate the business and invest to expand ASTRO internationally.