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Turtle Beach, a leading provider of headphones and developer of various audio technologies, signed an agreement this week to acquire ROCCAT, a gaming peripherals maker. This initiative creates a new combined gaming peripherals provider in the United States. the whole world.
Currently, Turtle Beach is primarily known in the United States and some European countries for its game heads for consoles and PCs. By taking over ROCCAT, the company procures keyboards, mice and various accessories for the players. Turtle Beach estimates that the company resulting from the merger will have a total of 48 commodity models for different markets. In addition, Turtle Beach is present in Asia and other European countries where ROCCAT is known. To a large extent, Turtle Beach and ROCCAT do not have a clear overlap in terms of product portfolio and distribution channels, which allows them to better integrate. It is unclear whether the ROCCAT material will be renamed Turtle Beach or whether the ROCCAT brand will remain.
René Korte, director of ROCCAT, and other employees of the company, will join Turtle Beach and continue to design peripherals.
Under the terms of the agreement, Turtle Beach will acquire ROCCAT for $ 14.8 million in cash (net of a working capital adjustment), for $ 1 million in cash or shares (option of the company) and up to about $ 3.4 million in price supplements. Turtle Beach expects ROCCAT to contribute approximately $ 20 to $ 24 million to its revenue for 2019, and more than $ 30 million for its revenue for 2020.
Sales in Turtle Beach totaled $ 287.4 million in 2018, while net income was $ 39.2 million. The lion's share of the company's revenues came from headphones for game consoles sold in North America, a market in which Turtle Beach held a share of about 40% over the past nine years. Meanwhile, Turtle Beach plans to increase sales of its computer gaming accessories to $ 100 million over the next few years. The acquisition of ROCCAT is therefore of strategic importance for the company.
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Source: turtle beach
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