The trend of mobile cell phone users opting to use head sets, and more cities considering banning the use of cell phones while driving is making the folks at Jabra Corp. smile.
The San Diego-based company makes a combined microphone and listening device called the “ear set” that fits comfortably into the ear, and allows cell phone users to talk while keeping both hands on the wheel.
Last year, Jabra did $25 million in sales. This year, it expects revenues of about $40 million.
That type of sales growth attracted the attention of GN Netcom, a Danish maker of telephone headsets, which agreed to purchase Jabra last week in a deal valued at $40 million plus an additional $35 million over the next two years if certain sales performance goals are met.
Jabra President Vicki Marion said the combination of Jabra and GN Netcom means the two firms will control about 20 percent of the hands-free headset market, based on 1999 revenues.
Marion said the acquisition provides Jabra with access to capital for continued growth; critical technology sharing; and stronger distribution channels in Europe and Asia.
The deal also lets Jabra remain in San Diego, with the current management and staff intact, and expectations of growing even larger. Staff at the 7-year-old company increased from 15 a year ago to 40. The ear sets are manufactured through contracts in China, South Korea and Irvine.
