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- Peripheral manufacturer Logitech entered into an agreement and plan of merger with San Francisco-based livestreaming software Streamlabs.
- Logitech will pay approximately $89M USD in cash with an additional earnout up to $29M based on Streamlabs’ net revenue subsequently to the merger.
- Streamlabs product will see no immediate changes, remain free to use, and is looking to create additional value for its users in collaboration with other Logitech-owned brands.
Yesterday, Swiss gaming and PC peripheral manufacturer Logitech entered into an agreement and plan of merger with livestreaming software developer General Workings (dba Streamlabs). Logitech will pay approximately $89M in cash to merge its wholly-owned Delaware corporation Clip Acquisition Sub with Streamlabs being the surviving entity and resulting in Logitech wholly owning Streamlabs upon close of the transaction.
Additionally, the agreement includes an earnout up to $29M in the form of Logitech’s registered shares based on Streamlabs net revenue following the merger. Under certain circumstances, Logitech may be required to pay the earnout in cash lieu of registered shares.
Streamlabs shared in a blog post that its tools will remain free to use and support for multiple platforms will continue. The company is looking to create new products utilizing synergies with the extended Logitech family—Logitech G, ASTRO Gaming, and Blue Microphones.
“We’ve been fans of Streamlabs and their software since we started partnering with them over two years ago,” said Ujesh Desai, general manager and vice president of Logitech G in a release. “Their industry-leading software is complementary to our existing gaming portfolio, and we believe we can do even greater things together.”
Logitech stated that it does not expect the Streamlabs acquisition to materially impact the company’s fiscal year 2020 annual net sales or its operating profitability. The business combination is subject to customary closing conditions and is expected to close in the coming weeks.
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