Logitech International announced that it has purchased the maker of the Harmony Remote advanced remote controls -- privately held Intrigue Technologies of Canada -- for U.S. $29 million in cash, plus a possible performance-based payment, tied to reaching certain future remote control revenues.
Intrigue, which will remain in Mississauga, Ontario, Canada, is said to have pioneered an innovative solution to solve the household problem of too many complicated remote controls.
The acquisition of Intrigue is part of Logitech's strategy to expand its presence in the digital living room. Logitech said it plans to build on this momentum by combining its experience in control devices for the PC -- most notably, the computer mouse -- with Intrigue's expertise and technology, to become the leader in an emerging market category.
"This acquisition allows us to position Logitech at the convergence of consumer electronics and personal computing in the living room," said Guerrino De Luca, Logitech president and CEO.
"Logitech's personal interface products are the point of contact between people and the digital world, the 'last inch' -- in homes, in offices, and on the go," he continued. "Logitech intends to be the defining and leading provider of the last inch in the living room and in the digital, connected home. The acquisition of Intrigue comes at the right time and provides the right assets to help us firmly establish our leadership."
Logitech expects the acquisition of Intrigue Technologies to add $10 million to $20 million in sales during the current fiscal year, with an immaterial effect on operating income.
"Beyond FY 2005," said Mr. De Luca, "We expect the category of advanced remote controls to deliver strong profitable growth."
Back to Breaking News