Logitech it seems is no stranger to acquisitions. The company has recently been purchasing several companies that complement their existing peripherals strategy, and just about the only thing they haven’t done in 2018 is buy another company – but that changes this week. Logitech’s big purchase this year is Blue Microphones, makers of several premium pieces of recording equipment suitable for everything from your amateur guitar covers to streaming and podcasting. Blue is a big player in the streaming market in particular, and this is a good fit for Logitech’s existing lineup of hardware designed for content creators.
According to a blog post on Blue’s website, the company was excited about the prospect of the acquisition and stated that both Logitech and Blue see this as a marriage of ideas, rather than some cheap intellectual property and brand grab.
“We have a lot in common with Logitech. Our products are all about the marriage of great design and stellar performance, and so are theirs,” says Blue. “We both have strong brands in the gaming market. 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.”
The deal isn’t set in stone yet, as there are still kinks to iron out and plans need to be made about how the $117 million will be financed (it is very likely that it will be stock options). In return for selling themselves to Logitech, Blue gains access to a wealth of IP held by Logitech including microphone patents and software support, and they can further tailor specific products to match Logitech’s aesthetic (RGB microphones, anyone?).
It’s interesting to see Logitech’s long-term plan playing out like this. Back in 2015, I asked Logitech about their entry into the VR space, and EMEA Head of Gaming, Andreas Schicker, noted that the company’s general approach in everything was instead to find or work with other companies to enter new markets, rather than spend gobs of money trying to do everything on their own. 2015 was also the turning point for the company’s change in mindset, moving towards becoming a more premium brand rather than a cheap go-to household name. It seems like that strategy is working for them.
On the plus side, this also means that Blue will probably be having sales to get their old stock off the market in preparation for a brand refresh.