Logitech to Acquire WiLife, Creator of Award-Winning Video Solution for Home and Office Self-Monitoring
FREMONT, Calif. and ROMANEL-SUR-MORGES, Switzerland, Nov. 8, 2007 — Logitech International (SWX: LOGN) (Nasdaq: LOGI) today announced that it is broadening its presence in the digital home with the acquisition of WiLife, Inc., which offers an affordable, easy-to-set-up, easy-to-use PC-based video solution for self-monitoring a home or smaller business. Logitech has entered into an agreement to acquire the privately held company, based in Draper, Utah, for approximately $24 million plus a possible performance-based payment, tied to reaching certain future revenue targets. The acquisition is subject to customary closing conditions and is expected to close by mid-November.
The award-winning WiLife solution leverages the power of the PC and the Internet to offer an alternative to expensive professional home-monitoring services. The solution consists of PC software, up to six wireless video cameras and a receiver plugged into wall outlets. The cameras and receiver communicate using HomePlug technology, which transmits the video through a building’s electrical wires. The video that is captured can be stored on a local PC hard disk or stored via the Internet by WiLife and accessed remotely – on a PC or a portable device such as a cell phone or PDA – using the WiLife online service.
“The acquisition of WiLife allows Logitech to offer yet another mainstream solution for more convenience and control in the digital home,” said Junien Labrousse, executive vice president of Logitech’s Products Group. "It provides an easy and affordable way to use a PC and video cameras to gain peace of mind when away from home. The WiLife business also complements our existing video business. Our video customers tell us that while connecting with friends and family is the primary reason why they purchase a Logitech webcam, many are very interested in an easy solution for self-monitoring their home or business, or the well-being of an elderly parent living far away.”
According to the Parks Associates survey “Global Digital Surveillance,” a significant number of broadband-connected households have indicated a high interest in remote monitoring of their home with a video camera: 9.8 million in the U.S., 2.5 million in the U.K., 2.3 million each in France and Germany, and 3.4 million in Japan.
Developed by experts in the home-surveillance industry, WiLife products, which first shipped in 2005, are sold online and through retailers, VARs and distributors in the U.S. and select European countries. With the acquisition, Logitech plans to use its extensive distribution network to broaden availability of the products. The WiLife business will become part of Logitech’s Internet Communications Business Unit, led by Gina Clark, vice president and general manager. Logitech plans to market the products under the Logitech brand.
“The acquisition of WiLife complements Logitech’s growing presence in the digital home,” said Guerrino De Luca, Logitech president and chief executive officer. “We are combining the power of simplicity, an intuitive interface and Internet-based services for convenience and control – whether it is intelligent control of the home-entertainment environment with the Harmony® remote, wireless access to digital music anywhere in the home with the Squeezebox™ network music player, immersive online gaming with our console and PC peripherals, or now self-monitoring of the home or business with WiLife.”
Impact on Financial Results for Current Fiscal Year
While Logitech views the long-term potential of the acquisition to be very promising, the impact of the acquisition on Logitech’s current fiscal year results is not expected to be material.
Logitech is a world leader in personal peripherals, driving innovation in PC navigation, Internet communications, digital music, home-entertainment control, gaming and wireless devices. Founded in 1981, Logitech International is a Swiss public company traded on the SWX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI).
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This press release contains forward-looking statements, including the statements regarding the expected effect of the acquisition on Logitech's financial performance. These forward-looking statements involve risks and uncertainties that could cause Logitech’s actual performance to differ materially from that anticipated in these forward-looking statements. Factors that could cause actual results to differ materially include Logitech’s ability to successfully integrate the WiLife products, technology and operations, the retention of WiLife employees, and Logitech’s ability to broaden availability of WiLife products. For information regarding other related risks, see the risk factors section in Logitech’s Annual Report on Form 20-F for the fiscal year ended March 31, 2007 and our quarterly reports on Form 6-K available at www.sec.gov. Logitech does not undertake to update any forward-looking statements.
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