Turtle Beach Completes Acquisition of ROCCAT
SAN DIEGO and HAMBURG, Germany, June 3, 2019
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 billion(1) 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 billion(1) PC gaming headset market, and the roughly $1.3 billion(1) 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 payments(2) . 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
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(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 EUR3M) will reflect exchange rate at the time of payment.