Hardware and Gear

Published on March 14th, 2019 | by gareth

0

Turtle Beach To Purchase Roccat

This is big news as it will give Turtle Beach to expand their already impressive lineup.

 

TURTLE BEACH TO ACQUIRE
LEADING PC GAMING ACCESSORY BUSINESS ROCCAT
– Acquisition Accelerates Turtle Beach’s PC Market Expansion Through ROCCAT’s Full Portfolio of PC Gaming Accessories –
– Adds New Distribution for Both Brands in North America, Europe and Asia –
San Diego, CA and Hamburg, Germany – March 14, 2019Turtle Beach (Nasdaq: HEAR), the global leader in gaming headsets and audio accessories, today announced the entry into an agreement to acquire ROCCAT – a top German PC peripherals company with a history of producing innovative, award-winning gaming mice, keyboards and other accessories.
With ROCCAT’s powerful product lineup added to Turtle Beach’s broad market position and leading headset brand, the acquisition significantly accelerates Turtle Beach’s planned expansion into the $2.9 billion1 market for PC gaming headsets, mice and keyboards. By acquiring ROCCAT, Turtle Beach further strengthens its market position in key PC-centric European territories, including Germany where ROCCAT is already a well-respected leading brand. Additionally, ROCCAT will see the benefits of Turtle Beach’s strong sales and distribution in North America and across Europe, while Turtle Beach will gain distribution into new Asian markets through ROCCAT’s presence in those markets.
Turtle Beach is acquiring ROCCAT for $14.8 million in cash, net of a working capital adjustment, $1 million in cash or stock (company option), plus up to approximately $3.4 million in earnout payments.2 Following the completion of the transaction, which is expected in the second quarter, ROCCAT’s partial year contribution to Turtle Beach’s 2019 net revenue is expected to be approximately $20–$24 million. The Company expects revenues from ROCCAT products to be over $30 million in 2020, and that the acquisition will be accretive to net income and EPS in 2020.
“This is a dynamic and strategically important deal for Turtle Beach,” said Juergen Stark, CEO of Turtle Beach. “We are adding a complementary portfolio of PC gaming mice and keyboards, a skilled PC accessories team, and a highly synergistic distribution footprint.
“The acquisition is also a key step in achieving our goal of building a $100 million PC gaming accessories business in the coming years. ROCCAT accelerates our expansion into the roughly $1.6 billion3 PC gaming headset market, as well as directly enables us to address the roughly $1.3 billion4 PC gaming keyboard and mice market. We believe our combined product portfolio is one of the strongest in the industry, covering gaming headsets for consoles and PC’s, gaming keyboards and mice. Together we will have 48 core product models to pursue the total addressable market of over $4.7 billion in North America, Europe and Asia.”
Stark continued, “We are thrilled to welcome René Korte and the ROCCAT team to the Turtle Beach family, as they are a highly talented group with deep experience in PC accessories and have a similar focus on providing high quality, innovative products to gamers worldwide.”
René Korte, CEO of ROCCAT, added, “We’ve long admired how Turtle Beach’s pioneering headsets have elevated gaming and it is an honor to join forces and bring our great products to more gamers. I have no doubt that combining ROCCAT’s strength in the PC peripherals market with Turtle Beach’s 45 years of experience, impressive technology, console dominance, and strong brand will bring even more victories to gamers around the world.”
ROCCAT has been ranked as one of the top 10 best-selling gaming peripheral brands in Europe, and per recent Newzoo consumer survey data3, is one of the top four brands for awareness, purchase consideration, and preference for gaming keyboards and mice in the German PC gaming peripheral market.
ROCCAT recently launched its new Vulcan Mechanical Gaming Keyboard and latest Kone AIMO RGBA Smart Customization Gaming Mouse to high editorial and fan praise. The original Kone mouse has been acclaimed as one of the most ergonomic gaming mouse shapes on the market and was the first mouse to incorporate RGB lighting into its design. The new Kone AIMO mouse was the best-selling PC gaming mouse in Germany in the fourth quarter of 2018.
The Vulcan keyboard introduced ROCCAT’s proprietary Titan mechanical switch and has become one of the top three best-selling gaming keyboards in Germany, as well as a best-selling product in its price tier. The Vulcan’s design was also recognized by winning the 2019 iF Design Award for its product category.
Turtle Beach is the global leader in gaming headsets and audio accessories, having held over 40% share of the console gaming headset market for the past nine consecutive years. In 2018, Turtle Beach extended its reach beyond the console space, launching a new lineup of Atlas PC headsets that drew high praise from leading PC writers and gamers alike.
For the latest information on ROCCAT’s lineup of PC gaming accessories, visit https://en.roccat.org/.
Wedbush Securities acted as exclusive financial advisor and Morgan Lewis acted as legal advisor to Turtle Beach on the transaction. CatCap GmbH acted as the exclusive financial advisor and Lutz Abel acted as legal advisor to ROCCAT.


About the Author



Comments are closed.

Back to Top ↑
  • PR Newswire

  • Trendnet

  • WritingsPro.com

    When time is up order urgent movie review essay writing because you will find it fast.
  • Recent Posts

  • Categories

  • Archives