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Plantronics weighs options following USD 2bn acquisition: Reuters
Posted on Friday, 09 November 2018 11:56
Headsets manufacturer Plantronics is exploring a range of alternatives, including a sale, after completing its USD 2.00 billion purchase of video conferencing equipment maker Polycom, Reuters reported.
The news provider cited people familiar with the matter as saying the company is keen to test the market after receiving takeover interest.
However, these same sources observed there can be no guarantee the strategic review will result in any deal.
Shares in Plantronics closed up 4.7 per cent to USD 61.90 prior to the news being reported yesterday, this gave the business a market capitalisation of USD 2.46 billion.
The company declined to comment when contacted by Reuters, while the sources asked not to be identified as the matter is still private.
Plantronics claims to be a leader in the audio and communications industry, with a portfolio of headsets, software, desk phones, video conferencing and other services, used in workspaces worldwide.
The group completed its USD 2.00 billion acquisition of Polycom in July in a bid to expand its products in the industry.
Founded in 1961, one of Plantronics’ first products were headsets for pilots and later became one of the leading providers of the communication devices to the National Aeronautics and Space Administration – commonly known as NASA – including the ones worn by Neil Armstrong during his first landing on the moon.
The New York-listed firm is partly owned by private equity group Siris Capital.
It doubled its second quarter net revenues this year, due to the Polycom acquisition, as well as recording an increase in the sales of voice and headsets year-on-year.
Plantronics generated total revenue of USD 704.39 million in the six months to 30th September 2018, up significantly from USD 414.23 million in the corresponding period of 2017.
However, the company bled red ink from its bottom line with a net loss of USD 72.24 million in Q2 2019, compared to a profit of USD 38.78 million in Q2 2018.
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