Logitech announces in its official press release page that it will be acquiring Streamlabs for $89 million. The acquisition is considered as a huge step forward by the company towards its existing gaming portfolio.
The acquisition of a streaming app company (Streamlabs), by a company that is largely known for various computer input peripherals (Logitech) seems rather strange at a glance. That is until you realize that Logitech is also is one of the most popular distributors of microphones and webcams. More than just potentially integrating both products and services together, widening its reach towards gamers via streaming features is definitely a plus being “complementary to (their) existing gaming portfolio”.
Streamlabs is perhaps most popularly known for developing Streamlabs OBS, a hugely popular streaming app that is catered towards dedicated streamers who usually stream live video as part of their major activity. The company was founded in 2014, and have since then grown to become one of the best streaming app developers with a focus a wide variety of live video presentation options. The company even claims that a vast majority of Twitch streamers use Streamlabs OBS, something that might not be totally accurate, but is largely plausible given its current reputation within its own industry.
Logitech, as mentioned earlier, is a company that offers input devices and gadgets such as keyboards, mice, as well as microphones and webcams. The company’s brand for keyboards and mice especially, is usually very well known for those who are even just broadly familiar with commonly purchased computer peripherals. It was founded way back in 1981, so the company’s overall portfolio within the tech industry, in general, is already quite significant.
In addition to the direct $89 million cash payment, Logitech has also agreed to pay an additional $29 million, if Streamlabs is capable of achieving its revenue growth targets under the ownership of the company.