Logitech buys headset maker Astro Gaming – CNET

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The Astro A40 TR headset.

CNET

Logitech is one of the best-known brands of keyboards, mice, headphones and webcams, whether you’re a gamer or not. 

Now, Logitech’s carving a deeper niche in the gaming peripheral market — by purchasing headset maker Astro Gaming for $85 million in an all-cash deal.

While you could technically call Astro Gaming a rival, as both companies produce headsets, Astro is best known for its pricey, high-quality Astro A40 and A50 headsets — which retail for upward of $250 — whereas Logitech’s highest-end headset originally cost just US $200 and can be had for closer to US $130 today. 

According to the press release, Logitech has a pretty specific aim by buying Astro: it wants to expand its product line into the game console market. (While some of its gear can technically be used with consoles, Logitech has mostly targeted PCs, tablets and phones as of late.)

“With the addition of ASTRO, we’re investing in an adjacent gaming market — the console gaming market — to help accelerate the long-term growth of our gaming business,” reads a line in the press release.

It’s not the first time Logitech has expanded by swallowing another peripheral company. It became a major player in Bluetooth speakers (and to some degree headphones) after purchasing Ultimate Ears for $34 million in 2008, it nabbed wireless earbud maker Jaybird for $50 million last April, and acquired flight stick maker Saitek from the wreckage of rival Mad Catz in September 2016.

Astro Gaming has also changed hands a couple of times: first when Skullcandy purchased the Astro Studios (they designed the Xbox 360) spinoff in 2011, and then again when Incipio bought Skullcandy for $177 million last June.

Meanwhile, Logitech rival Razer is making purchases it hopes will expand its scope beyond that of a peripheral company, purchasing audio company THX last October and phone maker Nextbit this past January.

The Logitech-Astro deal is expected to close in early August, according to the company.

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