Turtle Beach Completes Acquisition of ROCCAT
"With the acquisition of ROCCAT complete, we have a bigger and more powerful Turtle Beach than ever before, and we believe our combined product portfolio will be one of the strongest in the industry," said Juergen Stark, CEO, Turtle Beach Corporation.
SAN DIEGO and HAMBURG, Germany, June 3, 2019 /PRNewswire/ -- Turtle Beach (Nasdaq: HEAR), the global leader in gaming headsets and audio accessories, today announced the Company has completed its acquisition of ROCCAT, a leading German PC peripherals business with a history of producing award-winning gaming keyboards, mice and other PC accessories.
Turtle Beach's acquisition of ROCCAT marks the beginning of the next phase in the Company's expansion into the massive $2.9 billion1 market for PC gaming headsets, mice and keyboards, and is a key step in its goal of building a $100 million PC gaming accessories business in the coming years.
"With the acquisition of ROCCAT complete, we have a bigger and more powerful Turtle Beach than ever before, and we believe our combined product portfolio will be one of the strongest in the industry," said Juergen Stark, CEO, Turtle Beach Corporation. "The ROCCAT team and their products already have a great reputation among PC gamers, and their expertise will help accelerate our expansion into the roughly $1.6 billion1 PC gaming headset market, and the roughly $1.3 billion1 PC gaming keyboard and mice market. Our goal is to expand from being the leader in console gaming headsets into becoming a leading gaming accessory brand for all platforms."
René Korte, the new co-managing director of Turtle Beach's German subsidiary added, "It's a very exciting time for Turtle Beach and ROCCAT, as our newly combined portfolio now features nearly 50 current core product models across PC gaming mice and keyboards, PC gaming headsets, and console gaming headsets. And through our newly combined distribution channels across North America, Europe, and Asia, we'll be able to deliver our lineup of award-winning products to an even bigger audience of gamers around the world."
Turtle Beach acquired ROCCAT for $15.6 million in cash plus up to $3.3 million in earnout payments2. The Company expects revenues from ROCCAT products to be well over $30 million in 2020, and that the acquisition will be accretive to net income and EPS in 2020.
For more information on Turtle Beach's lineup of high-quality, German-engineered PC gaming accessories, visit https://roccat.org. For the latest information on Turtle Beach products, accessories, and stories, visit the Turtle Beach website at www.turtlebeach.com and the Turtle Beach Blog at https://blog.turtlebeach.com. Fans can also follow Turtle Beach on Facebook, Twitter, and Instagram.
1 Newzoo 2019 Peripheral Market Estimates.
2 Dollar amounts are approximations converted at 1.11 given that the deal is in Euros. Net working capital adjustment is a current estimate which could change. Dollar value of earnouts (worth up to €3M) will reflect exchange rate at the time of payment.
About Turtle Beach Corporation
Turtle Beach (www.turtlebeach.com) is a leading gaming accessory brand, offering a wide selection of cutting-edge, award-winning gaming headsets. Whether you're a professional esports athlete, hardcore gamer, casual player, or just starting out, Turtle Beach has the gaming headset to help you truly master your skills. Innovative and advanced technology, amazing high-quality gaming audio, crystal-clear communication, lightweight and comfortable designs, and ease-of-use are just a few features that make Turtle Beach a fan-favorite brand for gamers the world over. Designed for Xbox, PlayStation®, and Nintendo consoles as well as for PC, Mac®, and mobile/tablet devices, owning a Turtle Beach gaming headset gives you the competitive advantage. Hear Everything. Defeat Everyone.™ In June 2019 Turtle Beach acquired ROCCAT, a leading PC accessories maker that combines detail-loving German innovation with a genuine passion for designing the best PC gaming products. Turtle Beach's shares are traded on the Nasdaq Exchange under the symbol: HEAR.
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