Logitech buys Ultimate Ears

In a $34 million deal, Logitech bought out Ultimate Ears today. The deal is expected to close in August. It's an interesting acquisition, since Logitech has only been producing low-end headphones up until now. Ultimate Ears is known for making customized headphones (that cost upwards of $1000) for famous musicians and also rich people who want to feel like famous musicians.

Therefore, we found the following quote from Logitech's president and CEO somewhat interesting (mainly just the emphasized part): 

Since its inception, Ultimate Ears has been driven by innovation, close ties to its customers, and the desire to enable an immersive audio experience. Logitech’s success has been built on using a deep understanding of our customers to create innovative products that let people immerse themselves in their pursuits – whether they are listening to music, gaming, watching a video or otherwise enjoying their digital lifestyle. We look forward to using our worldwide distribution network and operational efficiencies to help more people discover this superior listening experience.

Ultimate Ears has never been a mainstream headphone company with a robust consumer line. It seems like Logitech is planning on steering the company away from its musician niche. Custom-fit headphones don't really benefit from a larger distribution network -- unless there are going to be Build-a-Bear-esque Ultimate Ears outlets. More than likely, Logitech just wanted to get in on the higher-end in-ear market and bought Ultimate Ears for their name and reputation. Our prediction: expect their .fi line to grow exponentially.

Fun "facts" from the press release:

• "An estimated 75 percent of today’s top touring rock musicians now use the Ultimate Ears custom-fit in-ear monitor while performing"? Not to diminish Ultimate Ears' achievements, but the term "top touring rock musician" can mean just about anything. They could be referring to three-fourths of Nickelback.
• "Ultimate Ears employs nearly 40 people." This ballpark figure is tantamount to understanding this acquisition. Nearly 40 people implies Ultimate Ears is classified as having "Lots" of employees.