Turtle Beach has revealed in a press release that they have entered into an agreement to acquire peripherals company Roccat, which the press release claims will cost Turtle Beach $14.8 million USD in cash, plus an extra $3.4 million in earnout payments.
This transaction is expected to be completed in the second quarter, after which Roccat's partial year contribution to Turtle Beach's 2019 net revenue is expected to be between $20 million to $24 million. Turtle Beach also expects revenues from Roccat products to be over $30 million 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 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."
Is this a good deal for both sides?