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Logitech Snaps up Slim Devices for $20 Million

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Logitech International recently acquired Slim Devices for $20 million, adding the maker of network-based audio systems to its diverse product line that ranges from computer mice to iPod headphones. The Swiss company said the acquisition, which also includes a performance-based payment for meeting future revenue targets, will allow it to meet the needs of people who want to control their digital music and Internet radio anywhere in the home. The acquisition is not expected to have a material impact this fiscal but CEO Guerrino De Luca said in the announcement that “we believe the long-term potential to be very promising.”
As with other acquisitions such as its 2004 purchase of Intrigue Technologies, Slim Devices will operate autonomously, a strategy that has served Logitech well, according to TechEffect’s Brian Ward. Ward: “Logitech is making a lot of sense with these decisions. They’re targeting companies which have already made a name for themselves in the home electronics market, and a good name. What they bring to the table is marketing, and possibly manufacturing expertise which will allow the company to expand its base of customers, drop prices and spread the word.”
Earlier this week, Logitech reported that profit in its fiscal second quarter sales rose 19 percent to $502 million, while operating profit gained jumped 36 percent to $52 million. Logitech Release