Plantronics Acquires Altec Lansing
[August 4, 2005]
Plantronics, a leading provider of headsets and voice communications devices, has signed a definitive agreement to acquire Altec Lansing Technologies, a leading provider of portable and powered audio systems. Under the terms of the agreement, Plantronics will acquire all of the capital stock of Altec Lansing for a cash purchase price in total of approximately $166 million. Following the close of the transaction, Altec Lansing Technologies will become a wholly-owned subsidiary of Plantronics.
Altec Lansing will remain in Milford [Pennsylvania], functioning as a division of Plantronics. Gary Savadove, former GE Consumer Electronics executive and CEO of Labtec, joined Plantronics six months ago and is president and CEO of the Plantronics Audio Entertainment Business Group which will now incorporate Altec Lansing. Bob Garthwaite, who has served as senior vice president of marketing and sales for Altec Lansing, will become president and CEO of Altec Lansing after closing of the agreement.
Altec Lansing, with more than $100 million in revenue in calendar 2004, brings to Plantronics a comprehensive range of products and an established market presence in portable and powered audio. Its award-winning inMotion portable speaker systems have become one of the biggest successes of the iPod economy.
In addition, Altec Lansing offers a wide range of computer and home entertainment sound systems and a line of headphones and headsets, allowing Plantronics to provide a more complete product portfolio to its combined retail and OEM channels worldwide.
The company expects that, excluding non-cash acquisition-related and amortization charges, the acquisition will be accretive to Plantronics earnings in thefinancial year 2006. Including non-cash acquisition related and amortization charges, interest expense and lost interest income, it does not currently expect the transaction to be significantly dilutive or accretive to EPS for the year as a whole. Finally, including non-cash acquisition related and amortization charges, interest expense if any and lost interest income, the company expects the acquisition to be accretive to EPS in the financial year 2007
According to Ken Kannappan, president and CEO, Plantronics, the combination of its expertise in voice communication and Altec Lansing's in music entertainment would enable it to meet the full audio needs of the consumer, in their personal and professional lives. The company has been exploring audio entertainment possibilities for some time. The acquisition of Altec Lansing, with its product portfolio strength and brand reputation, will serve to accelerate those plans.
Plantronics introduced the first lightweight headset in 1962 and is recognized as the world leader in communications headsets. A Plantronics headset was used for Neil Armstrong's historic "One small step for man, one giant leap for mankind" transmission from the moon in 1969.
The company is headquartered in Santa Cruz [California], with more than 4,500 employees, Plantronics maintains offices in 20 countries. Its shares are traded on the NYSE under the symbol: PLT>
Altec Lansing Technologies, Inc. has a rich legacy of blending art and science to stir the soul with high quality consumer and professional speaker systems. A market leader in portable and powered audio systems, Altec Lansing designs, manufactures and markets a wide range of computer and home entertainment sound systems and a line of headsets and headphones. It is headquartered in Milford [Pennsylvania] and has offices in the U.S., Luxembourg, and Hong Kong. The company employs approximately 1,350 people worldwide. Altec Lansing is a privately held company till this deal with Plantronics.
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