Logitech has acquired Slim Devices, developer of network-based home music systems such as Squeezebox.
Logitech purchased Slim Devices for $20 million in cash plus a possible performance-based payment, tied to reaching certain future revenue targets.
Guerrino De Luca, Logitech president and CEO explains: "Our focus is on people who want to listen to and control their digital music, anywhere in the home. Slim Devices brings expertise in both network-based music delivery and high-quality audio, and a committed community of developers. Slim Devices complements Logitech's existing technology and human-interface strengths, helping to ensure that we can deliver to music lovers the promise of the digital home."
"With digital music, the convergence between PC technology and home entertainment is particularly evident," said Junien Labrousse, senior vice president of Logitech's Entertainment and Communications business unit. "Millions of people around the world, in all walks of life, are using their PC or Mac to store their music collection - and those with broadband internet connections are enjoying the wealth of internet-radio content and other services. At the same time, increasing numbers of these music enthusiasts have wireless home networks that can be used to distribute the music throughout the home. Logitech sees significant potential for network-based digital music systems that can enhance the listening experience with high-quality audio, flexibility, choice and control."
Analyst firm Parks Associates CEO Tricia Parks says: "We forecast music downloads, online radio and music-subscription services at close to $1 billion in 2006 for the US alone. We forecast that amount to increase in the US to over $3 billion annually by 2010. Those figures don't even count the hardware revenues from necessary adaptors and controllers. Clearly, Logitech's timing for the acquisition of Slim Devices is excellent, just as it was for the acquisition of the Harmony remote business."
Slim Devices was founded in 2001 by CEO Sean Adams and CTO Dean Blackketter. Adams will lead the Slim Devices team as a distinct group within Logitech's Entertainment and Communications business unit.