Logitech Buys SightSpeed For $30 Million
Swiss based Logitech has announced it will acquire Internet video communications provider SightSpeed for about $30 million in cash. The deal is expected to be completed in early November.
Logitech says the acquisition will have a significant impact on its development of cross-platform video communications.
"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.
Labrousse said company research shows that is a large untapped market of people who want to communicate with friends and family using video. The challenge is that consumers want video integrated into their family lifestyle, which means going beyond the PC. He added that SightSpeed will help create "the next wave of video communications enthusiasts."
SightSpeed was founded 7 years ago and the company has 25 employees. It uses Session Initiation Protocol (SIP), a standard that enables the services to be interoperable with other Internet communication services.
Skype offers a similar video service and both companies hope to attract a large number of users. SightSpeed offers a free version, a standard package available for $9.95 per month or $99.95 per year and a business edition for $19.95 per user per month or $189.95 per year.