Logitech International plans to use Internet video-call technology to help soldiers see families at home and help executives abroad communicate with colleagues. Such scenarios are expected from Switzerland-based Logitech’s acquisition of California-based SightSpeed, a provider of Internet video services.
Logitech, a computer-peripherals company with more than 7,000 employees, announced late Tuesday that it will pay $30 million in cash for SightSpeed, which currently has 25 employees. Logitech expects to close the deal in early November, but does not expect the acquisition to affect results for its current fiscal year.
“With this acquisition, we are significantly augmenting our current video R&D resources to help us move more quickly toward our goals for video services that complement the way people socialize, communicate and enjoy entertainment,” said Junien Labrousse, executive vice president of Logitech’s products group.
The announcement comes just two months after Logitech announced it would pay $34 million for another California company — Ultimate Ears, a provider of custom, in-ear monitors.
Logitech is using the acquisition to tap into what it said is an untapped market of people wanting to use video communications. It wants to build on SightSpeed’s existing services, which include video chat; video calls and instant messaging; video mail with an inbox; unlimited video storage; and four-way friend calling.
“According to our research, there is large untapped market of people who want to communicate with friends and family using video,” Labrousse said. “But they want it to be integrated into their family lifestyle, which means going beyond the PC.”
“We believe with SightSpeed we can help create the next wave of video-communications enthusiasts,” he added.
Currently consumers pay $9.95 per month per seat and $99.95 a year for the personal-use version. SightSpeed also offers a free version with fewer features. For businesses, the cost is $19.95 per seat and $189.00 annually for one…