Plantronics sell Altec Lansing for US$18 million

Plantronics has agreed to sell Altec Lansing to Prophet Equity LP, a Texas-based private equity firm, for US$18 million in cash.

The sale 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.

Ken Kannappan, Plantronics President and CEO, says unified Communications represent 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.”

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, including the right to use the Altec Lansing brand for specific music applications for three years.

In Australia and New Zealand, 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. Amber Technologies will also take on the role of master distributor for Altec Lansing in Australia, effective immediately.

Peter Petrides has been promoted to the position of Plantronics National Retail Sales Manager.

Plantronics also announced today that Cellnet will come onboard as its new distributor in Australia. The agreement will see Cellnet join existing Plantronics partners Amber Technology, Anyware and Roadhound Electronics.