Just in case you guys are interested in reading the 'official' press release, this is what I recieved from Pam at Logitech yesterday.
Scott,
Just wanted to give you a quick heads up that Logitech announced today that
we have acquired Slim Devices.
I have attached the press release. Please let me know if you have any
questions.
-Pam
Logitech Acquires Slim Devices, Pioneer in Network-Based Music Systems
Developers of award-winning Squeezebox join Logitech to deliver promise of
digital home to music lovers
FREMONT, Calif. Oct. 18, 2006 and ROMANEL-SUR-MORGES, Switzerland, Oct. 19,
2006 —Logitech International (SWX: LOGN) (Nasdaq: LOGI) today announced
that it has acquired Slim Devices, Inc., a pioneer in the development of
music systems that take advantage of a home network. Products from Slim
Devices, such as the acclaimed Squeezebox™ and the recently announced
Transporter™, enable people to enjoy high-quality digital music, in
multiple rooms of the home, regardless of whether the music is streaming
directly from the Internet, or from a PC, Mac, or storage device on the
network. Logitech purchased the privately held Slim Devices of Mountain
View, Calif. for $20 million in cash plus a possible performance-based
payment, tied to reaching certain future revenue targets.
“With the acquisition of Slim Devices, Logitech is building on our
foundation of innovation in digital music and home-entertainment control to
address an emerging market,” said Guerrino De Luca, Logitech president and
chief executive officer. “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.”
In a recent survey of online households in the U.S., conducted by research
firm Parks Associates, nearly half of respondents characterized as music
aficionados indicated very high interest in the ability to listen to any
song, whenever they want, wherever they are, and one third of these
respondents were very interested in listening to Internet or computer-based
music/audio on their stereo. According to Parks Associates Chief Executive
Officer Tricia Parks, “We forecast music downloads, online radio and
music-subscription services at close to $1 billion in 2006 for the U.S.
alone. We forecast that amount to increase in the U.S. to over $3 billion
annually by 2010. Those figures don’t even count the hardware revenues from
necessary adapters 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. This fills out Logitech’s
wireless music line, and offers audiophiles interested in high-fidelity
sound their own network solution.”
Slim Devices was founded in 2001 by Sean Adams, serving as chief executive
officer, who was joined by Dean Blackketter, serving as chief technology
officer. The company has worked with the contribution of a worldwide open
source community to develop the SlimServer software, which powers the
Squeezebox and Transporter, as well as the SqueezeNetwork, which delivers
content to the devices from the Internet, without requiring a PC. By
becoming part of Logitech, the Slim Devices team gains the advantage of
Logitech’s expertise in interface-product design and amplified-audio
systems, as well as marketing resources and distribution channels, which
include consumer electronics retailers in countries throughout the world.
Led by Sean Adams, the Slim Devices team will become a distinct group
within Logitech’s Entertainment and Communications business unit. “Slim
Devices has been very successful in developing and enhancing network-based
solutions for delivering premium-quality digital music and Internet radio
to music lovers, thanks to our effective collaboration with our open source
community,” said Sean Adams. “Now we have the opportunity to leverage the
marketing, sales, distribution, supply chain, manufacturing and engineering
resources of a company that shares our passion for innovation in digital
music and that can help us reach a wide range of mainstream customers.
We’re very excited about joining the Logitech team to continue to shape the
future of digital music in the home.”
Labrousse continued, “We’re very enthusiastic about broadening our
development efforts with the inclusion of the Slim Devices team and one of
their key assets – a committed community of developers.”
Logitech Foundation in Audio and Home-Entertainment Control
Audio is one of Logitech’s fastest-growing businesses, growing by 112
percent in the company’s last full fiscal year, ended March 31, 2006. The
growth has been driven by the increasing popularity of digital music, which
Logitech supports with award-winning, premium PC speakers, as well as a
line of stylish and high-quality iPod/MP3 speakers and headphones. Logitech
is the worldwide market leader in PC speakers, and is gaining significant
momentum in the iPod/MP3 speaker market.
As part of its commitment to the emerging market of wireless music systems,
Logitech recently launched the Wireless DJ™ Music System, which allows
people to stream digital music from a PC to a stereo without a home
network. The product includes the Wireless DJ remote, which makes it easy
to browse and play music selections from anywhere in the home.
Logitech’s presence in the living room includes delivery of digital music
as well as control of music and home-entertainment systems. Since acquiring
its Harmony remote business in 2004, Logitech has become the clear market
leader in advanced programmable remote controls in the U.S., and the
emerging leader in Europe. Distinguished by their ease of setup and use,
the Harmony remotes have become widely available in consumer retail outlets
throughout North America and Europe.
Impact on 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
is not expected to be material.
About Logitech
Founded in 1981, Logitech designs, manufactures and markets personal
peripherals that enable people to effectively work, play, and communicate
in the digital world. Logitech International is a Swiss public company
traded on the SWX Swiss Exchange (LOGN) and in the U.S. on the Nasdaq
Global Select Market (LOGI).
~~~~~~~~~~~~~~~~~~
Pamela McCracken
Logitech Public Relations
Gaming and Audio Devices Specialist
http://www.logitech.com/
