The global gaming audio provider Turtle Beach takes over the accessories provider Roccat. With this takeover, Turtle Beach aims to drive expansion in the PC market and create new distribution channels in Europe, Asia and North America.
The listed US technology group Turtle Beach, a global leader in gaming headsets and audio accessories, today announced its plans to join Roccat, a German PC accessories company with an impressive history of innovative, award-winning gaming mice, keyboards and other accessory products.
With the addition of the impressive Roccat product lineup in conjunction with the broad market position of Turtle Beach and its leading headset brand, the acquisition significantly accelerates Turtle Beach's expansion plans in the US $ 2,9 billion market for PC gaming headsets, Mice and keyboards. With the acquisition of Roccats, Turtle Beach continues to strengthen its market position in important, PC-oriented European countries, including Germany, where Roccat is already a well-known brand. In addition, Turtle Beach's first-class sales force in North America and all of Europe gives Roccat enormous advantages, while Roccat's presence in Asia opens up new distribution opportunities for Turtle Beach in these markets.
“This is a dynamic and strategically important deal for Turtle Beach. We get a great portfolio of PC gaming mice and keyboards and an experienced team in the field of PC accessories, at the same time great synergies open up for our sales presence. The acquisition is also an important step towards achieving our goal of building a US $ 100 million business in PC gaming accessories over the next few years. Roccat is accelerating our expansion in the roughly $ 1,6 billion PC gaming headsets market and allowing us direct entry into the roughly $ 3 billion PC gaming keyboards market and mice. We believe that our joint product portfolio, which covers the areas of gaming headsets for consoles and PCs, gaming keyboards and mice, is one of the most powerful in the industry. Together we have 1,3 core products to tap the total addressable market of over 4 billion US dollars in North America, Europe and Asia. "
Jürgen Stark, CEO of Turtle Beach
Turtle Beach is acquiring Roccat for approximately $ 14,8 million in cash, less a working capital adjustment, $ 1 million in cash or stock, plus up to approximately $ 3,4 million in earn -Out payments2. Upon completion of the transaction, which is expected in the second quarter, Roccat is expected to add approximately $ 2019-20 million to Turtle Beach's revenue in 24. The company expects Roccat product sales to exceed $ 2020 million in 30 and the acquisition will have a positive impact on net income and earnings per share in 2020.
“We've long admired how Turtle Beach's exemplary headsets advance gaming, and it's an honor to join forces and bring our world-class products to even more gamers. I have no doubt that Roccat's strength in the PC aftermarket combined with Turtle Beach's 45 years of experience, impressive technology and console dominance, and strong brand presence will continue to drive gamers around the world to victory."
René Korte, CEO of Roccat
Roccat is one of the ten best-selling gaming peripheral brands in Europe and, according to the latest Newzoo consumer surveys5, is one of the four leading brands in terms of awareness, buying behavior and preference for gaming keyboards and mice in the German PC gaming market.
Roccat recently received high praise from fans and the trade press for the release of its Vulcan keyboard series and the latest in the popular Kone mouse series, the Kone AIMO. The original Kone was dubbed one of the most ergonomic gaming mice on the market for its design and was also the first mouse with RGB lighting. The new Kone Aimo was the best-selling PC gaming mouse in Germany in the fourth quarter of 2018.
The new Vulcan mechanical gaming keyboard introduced Roccat's own Titan Switch and became one of the three best-selling gaming keyboards in the German year-end business as well as the best-selling product in its price category. The design of the Vulcan keyboard was awarded the coveted iF Design Award 2019 in its product category.
Turtle Beach is the world's leading provider of gaming headsets and audio accessories, with a market share of over 40 percent in console gaming headsets for the past nine consecutive years. In 2018, Turtle Beach expanded its radius of action beyond the console area with the publication of the Atlas PC headsets and received great recognition from gamers and recognized editors of the PC trade press alike.
