Credit: Fergus Halliday | IDG
One of the biggest names in console gaming accessories has announced it'll be acquiring one of the biggest names in PC gaming peripherals.
“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 terms of the deal will see Turtle Beach acquire Roccat for $14.8 million in cash, $1 million in cash or stock plus up to approximately $3.4 million in earnout payments. Assuming everything goes to plan, the company expects Roccat to contribute approximately $20–$24 million to Turtle Beach’s net revenue for 2019.
The intention here is that, by acquiring Roccat, Turtle Beach will be able to strengthens its market position in European territories and new Asian markets while Roccat will be able to benefit from Turtle Beach’s presence in North America
Acccording to Stark, “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 billion1 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.”
With Logitech acquiring both Astro and Elgato in recent years, this news marks a further concentration of the wider gaming peripheral market.
René Korte, CEO of Roccat, says that “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.”
