In a press release, Turtle Beach has announced that it’ll acquire PC gaming accessory maker ROCCAT. For those not familiar with ROCCAT, it’s a big German PC peripheral maker that produces gaming keyboards, gaming mice, and more.
Turtle Beach is acquiring ROCCAT for $14.8 million in cash, “net of a working capital adjustment, $1 million in cash or stock (company option), plus up to approximately $3.4 million in earnout payments.” Following the completion of the acquisition, which is expected to happen in the second quarter, Turtle Beach’s 2019 net revenue is expected to be at $20-$24 million. Turtle Beach is expecting revenue from ROCCAT products to be at over $30 million in 2020.
This expected Turtle Beach acquisition will significantly accelerate Turtle Beach’s planned expansion into $2.9 billion market for PC gaming headsets, mice, keyboards, and more.
Juergen Stark, CEO of Turtle Beach had this to say:
This is a dynamic and strategically important deal for 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 billion3 PC gaming headset market, as well as directly enables us to address the roughly $1.3 billion4 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.
We are thrilled to welcome René Korte and the ROCCAT team to the Turtle Beach family, as they are a highly talented group with deep experience in PC accessories and have a similar focus on providing high quality, innovative products to gamers worldwide.
Congrats, Turtle Beach!