#Turtle Beach#Gaming#eSports#Roccat#Peripherals#René Korte#René Korte#Juergen Stark#Juergen Stark

Turtle Beach to acquire Roccat for $18mn

hotmaillogin
|Mar 15|magazine7 min read

San Diego-based manufacturer of gaming headsets and audio accessories, Turtle Beach, announce this week that it has signed a definitive agreement to acquire leading German computer peripherals company ROCCAT. The deal, which will see Turtle Beach pay approximately US$18mn for ROCCAT, is part of the company’s continuing expansion into the $2.9bn gaming peripherals market.

Founded in 1975, Turtle Beach has traditionally specialized in audio peripherals and equipments for professional and casual video gaming. The company sells products for Xbox, Playstation, PC, Mac and mobile/tablet devices. ROCCAT is a leading designer and manufacturer of gaming peripherals in Germany and the rest of Europe. The acquisition will allow ROCCAT distribution access to the North American Market and position Turtle Beach for its expansion into new revenue verticals and regions.

Turtle Beach is acquiring ROCCAT for $14.8 million in cash, net of a working capital adjustment, $1mn in cash or stock, in addition to approximately $3.4mn in earnout payments. 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–$24mn. The Company expects revenues from ROCCAT products to be over $30mn in 2020.

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"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 $100mn PC gaming accessories business in the coming years. ROCCAT accelerates our expansion into the roughly $1.6bn PC gaming headset market, as well as directly enables us to address the roughly $1.3bn 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."