Logitech Worldwide, a Swiss producer of keyboards and webcams, is in discussions to amass Plantronics, a U.S. maker of Bluetooth earpieces and gaming headsets, folks acquainted with the matter mentioned on Friday.

The deal can be by far Logitech’s largest acquisition and would illustrate the corporate’s push to diversify its enterprise. It could come as Logitech and Plantronics search to maintain down manufacturing prices following the introduction of tariffs on imports from China into the US.

Logitech has provided greater than $2.2 billion to amass Plantronics, one of many sources mentioned. As of the tip of buying and selling on Friday, Plantronics had a market capitalization of about $2 billion.

If the negotiations show profitable, a deal between Logitech and Plantronics may come as early as subsequent week, the sources added, cautioning that it was additionally potential that no settlement can be reached.

The sources requested to not be recognized as a result of the negotiations are confidential. Logitech and Plantronics didn’t instantly reply to requests for remark.

Logitech’s and Plantonics’ companies have been underneath stress on account of new choices being developed, not simply from community gear makers reminiscent of Cisco Programs, but additionally from main know-how firms reminiscent of Microsoft and Google proprietor Alphabet.

Based in 1981, Logitech has been countering declining gross sales of private computer systems by specializing in shopper equipment which might be benefiting from the expansion of cloud computing, reminiscent of gaming, music, sensible house connectivity and video conferencing. The Lausanne-based firm has a market capitalization of $5.6 billion.

Final yr, Logitech acquired ASTRO Gaming for $85 million in money to develop within the online game sector.

Santa Cruz, California-based Plantronics makes unified communications techniques, wi-fi headsets, conferencing techniques, and a few software program, which it sells to companies and shoppers.

Based in 1961, Plantronics’ first merchandise have been light-weight headsets for airline pilots. It later turned identified for promoting headsets to the Nationwide Aeronautics and Area Administration (NASA), together with those worn by Neil Armstrong throughout his first moonwalk in 1969.

A sale of Plantronics would come on the heels of the corporate’s $2 billion acquisition in July of U.S. video-conferencing gear maker Polycom Inc.

Personal fairness agency Siris Capital Group owns 16 p.c of Plantronics, making it its largest shareholder. Reuters had reported earlier this month that Plantronics was exploring a sale.

This story is creating. Please verify again for updates.

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