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The Turtle Beach Helmet Company extends to gaming peripherals. The company yesterday announced the acquisition of the company Roccat, maker of mice and keyboards. The agreement gives Turtle Beach access to a market of hardware enthusiasts who spend a lot of money. Roccat manufactures the Vulcan keyboard with its own Titan mechanical switches.
The terms of the transaction include $ 14.8 million in cash. It also involves $ 1 million in cash or stock and $ 3.4 million in profit payments. But it's relatively affordable for Turtle Beach.
Game helmets are a lucrative business for Turtle Beach, and the company has recently flourished. The popularity of the shooters of the royal battle leads to the adoption of its products. According to the NewZoo intelligence firm, the global market for headsets, keyboards and mice represents $ 2.9 billion.
"This is a dynamic and strategically important agreement for Turtle Beach," said General Manager Juergen Stark. "We are adding a complementary portfolio of PC gaming mice and keyboards, a team of competent computer accessories and a highly synergistic distribution footprint. The acquisition is also a milestone in achieving our goal of creating a $ 100 million computer gaming accessory business over the next few years. "
Everything about margins
One of the keys to Turtle Beach's business is that helmets have a relatively high profit margin. The trade in keyboards and mice is similar in this respect. And audiences for these devices overlap with the current clientele of Turtle Beach.
As a result, Turtle Beach can continue to leverage its current strategy while increasing revenues and profits.
"Roccat accelerates our expansion into the $ 1.6 billion computer gaming headset market and also allows us to directly tackle the mouse and gaming keyboard market for computers of about 1, $ 3 billion, "said Stark. "We believe our combined product portfolio is one of the strongest in the industry, including console and PC game headsets, game keyboards and mice. Together, we will have 48 commodity models to cover a total potential market of more than $ 4.7 billion in North America, Europe and Asia. "
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