Logitech (NASDAQ: LOGI), the recognized producer of computer peripherals, decided to acquire Streamlabs, a leader in live streaming for gamers. The goal is to offer new solutions for gamers that livestream across platforms. The information was released by the company in a blog post a few hours ago.
Logitech Acquires Streamlabs
Logitech decided to move forward and acquire Streamlabs. This would allow the community of livestream gamers in platforms like YouTube, Twitch, Mixer or Facebook to have better services and options to improve their livestreams and gaming sessions.
Logitech paid approximately $89 million in cash. However, it will be necessary for the company to pay an additional $29 million in stock if Streamlabs is able to meet some key growth metrics.
With this acquisition, Logitech will have much closer contact with individuals that livestream their game sessions in different platforms. Indeed, these gamers are some of the main buyers of Logitech products released to the market.
The general manager and vice president of Logitech’s gaming business, Ujesh Desai, commented:
“Logitech’s acquisition of Streamlabs adds software and tools for live streamers to our already rich gaming offering. Their products complement our existing portfolio and allow us to serve even more game streamers around the world with better experiences.”
Ali Moiz, the CEO of Streamlabs, explained that their goal was to enable streamers to make a living by playing games and showing it to other users. With this partnership, the firm considers they will be able to make it even easier for them to achieve their dreams.
The new acquisition is not expected to impact Logitech’s financial results for the fiscal year 2020 in terms of annual net sales or non-GAAP operating profitability.
In the short-term, nothing changes for Streamlabs. They will continue offering support for multiple platforms. The tools users have are also going to remain open and free to use. Additionally, the firm will be able to focus on building more innovative solutions with the agreement with Logitech.
Logitech is currently providing users with mouses, cameras, microphones and more. The deal will help strengthen this relationship between Logitech, Streamlabs and their respective communities.
For example, content creators could eventually start promoting Logitech products and create more seamless links between users and their gaming sessions.
Logitech stocks is currently operating stably with a price per share of $39.86.