Turtle Beach has announced an agreement to acquire ROCCAT, a German PC peripherals company which will widen their reach into the European markets.
The acquisition is for $14.8 million in cash, $1 million in cash or stock (company option) and up to $3.4 million in earn-out 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–$24 million. Turtle Beach 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. The acquisition is also a key step in achieving our goal of building a $100 million PC gaming accessories business in the coming years.” Juergen Stark, CEO of Turtle Beach, said, “ROCCAT accelerates our expansion into the roughly $1.6 billion PC gaming headset market, as well as directly enables us to address the roughly $1.3 billion 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.”
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.”
Esports Insider says: Gaming peripherals are key for any major esports organisation. Being able to provide high-quality products to a wide market will no doubt set Turtle Beach apart from other companies on the market – and it’s an interesting move for a brand generally associated with consoles. Competition is definitely heating up.