Swiss personal computer and mobile peripherals provider Logitech International announced it will acquire streaming software company Streamlabs. The deal is expected to close in the coming weeks.
— Streamlabs (@streamlabs) September 26, 2019
“We’ve been fans of Streamlabs and their software since we started partnering with them over two years ago,” said Ujesh Desai, the General Manager and Vice President of Logitech G, in a press release. “Their industry-leading software is complementary to our existing gaming portfolio, and we believe we can do even greater things together.”
Logitech will acquire Streamlabs for around $89 million in cash. Another $29 million in Logitech stock will be added on top if the company can hit “significant revenue growth targets.” The purchase will not impact Logitech’s 2020 fiscal year annual net sales or operating profitability. Logitech is most well known for its computer products. Brands like Logitech G, ASTRO Gaming, Ultimate Ears, Jaybird, and Blue Microphones are some of its subsidiaries.
“Streamlabs and Logitech both share a strong passion for gaming and a dedication to serving the global community of gamers and streamers,” said Ali Moiz, the Chief Executive Officer of StreamLabs. “Joining with Logitech allows us to keep doing what we love and be bolder than ever on a much bigger stage.”
Streamlabs is some of the most well-known streaming software for live streamers. The product started off in a freemium model and still is offered at no cost. Over 15 million streamers have used its software, which helps streamers set up and monetize their content creation. It is similar to what Open Broadcaster Software (OBS) does, except there are more features to track alerts, bring up statistics, and integrate the community into the stream itself.
However, Twitch recently released an update for the future implementation of a Channel Points viewer loyalty program. This will directly compete with Streamlabs’ Loyalty Points feature that works the same way. Both programs allow streamers to set up rewards for viewer watch time and interaction. With Twitch’s recent brand refresh, many extra features may also be directly offered by Twitch, instead of requiring a third-party platform.