Streamlining of organisation to take advantage of Unified Communications opportunities
Plantronics, Inc. (NYSE: PLT) has announced that it has entered into a
definitive agreement to sell Altec Lansing, the Audio Entertainment
Group (AEG) of Plantronics, to Prophet Equity LP, a Texas-based private
equity firm, for consideration of approximately USD $18 million in cash,
net of liabilities assumed, and subject to certain adjustments. The
transaction, which was approved by Plantronics’ Board of Directors on
October 1, 2009, is expected to be finalised in December.
In conjunction with the sale of Altec Lansing assets, Plantronics also
announced a streamlined corporate structure, replacing the matrix it had
operated with, to best target the Unified Communications sector.
“Unified Communications represents the greatest revenue and profit
opportunity in the Company’s history. The reorganisation and asset sale
represents further steps to focus on our core market, improve the
Company’s return on invested capital and enhance time to market and
profitability through a simpler organisational structure,” stated Ken
Kannappan, President and CEO.
Under the terms of the agreement, Plantronics will retain certain Altec
Lansing assets and liabilities as of the closing date, including
accounts receivable, accounts payable and certain other liabilities. As
a result, Plantronics expects these net assets to result in additional
operating cash flow once the retained working capital assets are
monetised in fiscal 2010. Plantronics will also retain assets and/or use
of certain assets with strategic value to Plantronics, including the
right to use the Altec Lansing brand for specific music applications for
three years. As a result of the sale of Altec Lansing, Plantronics
expects all future and historical AEG segment results to be reported as
discontinued operations in Plantronics financial statements, beginning
in the third quarter of fiscal 2009.
“Altec Lansing contributed to our success in the consumer market, where
we are today a Bluetooth headset market leader and we will work hard to
ensure a smooth transition for Altec Lansing’s partners and customers.
We are confident that Prophet Equity LP will continue to manage the
business effectively,” Kannappan concluded.
In Australia, Altec Lansing will establish its own sales office under
the stewardship of Chris Brown, who will transition to Altec Lansing
from his role as Plantronics National Retail Sales Manager. Effective
immediately Amber Technologies will also take on the role of master
distributor for Altec Lansing in Australia.
Assuming the responsibility of Plantronics National Retail Sales Manager
will be Peter Petrides. Peter brings with him a wealth of experience in
retail sales, go to market strategy and business development having
worked in both retail and the channel for over twelve years.
Plantronics is also announcing today that Cellnet will come onboard as a
new distributor in Australia. The agreement will see Cellnet join
existing Plantronics partners Amber Technology, Anyware and Roadhound
Electronics.
“Plantronics heritage and reputation for quality and reliability was a
key factor in deciding to add their products to our portfolio. We are
excited by the opportunities the Plantronics Brand and their innovative
products bring us” said Cellnet CEO, Stuart Smith.
Graeme Gherbaz, Managing Director, Plantronics A/NZ added, “We are
delighted to announce Cellnet as our new distribution partner. As a
leading accessory and retail distribution partner, Cellnet was an
obvious choice for us when we were assessing more efficient and
effective options for providing market reach.”
About Plantronics
Plantronics is a world leader in personal audio communications for
professionals and consumers. From unified communication solutions to
Bluetooth headsets, Plantronics delivers unparalleled audio experiences
and quality that reflect our nearly 50 years of innovation and customer
commitment. Plantronics is used by every company in the Fortune 100 and
is the headset of choice for air traffic control, 911 dispatch and the
New York Stock Exchange. For more information, please visit www.plantronics.com/au
or call +61 3 9326 1653.
About Cellnet
Cellnet is a market leading distributor of telecommunications, flash
memory and consumer electronics in Australia and New Zealand. The
company is listed on the Australian Stock Exchange and has distribution
and sales facilities across Australia and New Zealand. For more
information visit www.cellnet.com.au
Altec Lansing and Plantronics are trademarks or registered trademarks
of Plantronics, Inc. The Bluetooth™ word mark and logos are registered
trademarks of Bluetooth SIG, Inc. and any use of such marks by
Plantronics is under license. All other trademarks are property of their
respective owners
