Logitech has just acquired a powerful player in the audio-headset market, namely Astro Gaming. This organization has already managed to make an influential name for itself through a large palette of PC peripherals such as mice, headsets, and keyboards. Through this new addition to its portfolio of purchases, Logitech earned a dominant piece of the industry on the spot.
Astro Gaming Was One of Logitech’s Rivals in Audio-Headset Market
Logitech paid $85 million in cash for integrating Astro Gaming in its business. The merger might be ready in August. Through this one move, Logitech gained access to a profitable pool of clients who are mostly passionate gamers. This means that they are willing to support innovation in PC industry as long as it boosts their playing experience. Logitech was half way there through its brand entitled Logitech G which is focused solely on gaming.
The two parties were actually rivals within the audio-headset market. Astro had some popular, high-quality products for which consumers were willing to spend a pricey budget. The most successful lines were Astro A50 and A40 headsets which could reach even $250 a pair. On the other hand, Logitech’s highest price tag in this PC niche stopped at $200.
Logitech Created a Pattern in Its Mergers and Acquisition Department
According to a press statement, the company has big plans for this investment. Logitech intends to focus less on PCs, phones, and tablets, and more on the game console market. The organization intends to streamline this segment until it hits long-term growth.
The company shows a pattern in its acquisition department. Every move is carefully tailored to gain access to a new niche and expand its outreach there. For instance, the $34 million investment in Ultimate Ears rendered Logitech a prestigious position within the market for Bluetooth speakers. The same goes for Jaybird and Saitek which represented keys to wireless earbuds and flight stick niches respectively.
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