(San Diego, CA and Hamburg, Germany) In the European marketplace; Roccat, GmbH, is known for having products that, are designed to be very sophisticated, and, sleek in style. The previously said, is for its product lines of PC gaming accessories. Mice, keyboards, headsets, mouse pads and other types of PC gaming accessories make up the Roccat PC gaming product lines. Recently, the Turtle Beach Corporation revealed that, it had an interest in Roccat, GmbH. This interest stemmed from Roccat’s illustrious history, in the European marketplace. Incidentally, Roccat’s history does include award winning product innovation. Fascinatingly, this interest resulted in, an agreement to acquire. Post-acquisition, the Turtle Beach Corporation will receive the full portfolio of, Roccat PC gaming product lines. Additionally, a distribution pipeline will also be obtained, post-acquisition. The distribution pipeline is for both brands; Roccat, and, Turtle Beach. This pipeline covers the world regions; North America, Europe and Asia. The preliminary acquisition cost, was revealed to be a minimum of, $14.8 million USD.
The preliminary minimum amount of $14.8 million dollars, is to acquire Roccat, GmbH, through the Turtle Beach Corporation’s (NASDAQ: HEAR) working capital. Additionally, the aforementioned preliminary amount could still go up, based on the following two things. The first thing is; about an extra $1 million dollars in cash, or, the same amount but in Turtle Beach’s company stock options. The previously said, obviously, increases the acquisition cost. The second thing is, an additional $3.4 million dollars in earnout payments. Earnout payments are additional payments that, are based on the future performance of the sold business. Usually, they are asked for by the seller of the business. The previously said, obviously, increases the acquisition cost.
The acquisition of Germany’s Roccat, is expected to be closed or finalized, during the second business quarter of the year 2019. For the Turtle Beach Corporation’s common traded stock, the following two things are expected to happen. The first thing, is Roccat is expected to contribute about $20 million to $24 million USD, to Turtle Beach’s net revenue. The latter, is for the business year 2019. Additionally, it will be classified as a partial year contribution. The second thing, is for the business year 2020, the contribution to the net revenue goes up to an estimated $30 million dollars. As a result, this acquisition will be considered to be accretive to the earnings per share (E.P.S.). In other words, accretive to the value of common traded stock. Juergen Stark is the Chief Executive Officer of the Turtle Beach Corporation. Through a press statement, Mr. Stark said the following. “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.”
René Korte is the Chief Executive Officer of Roccat, GmbH. Through a press statement, Mr. Korte said the following. “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.”
To end, Juergen Stark concluded his press statement by stating. “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 billion PC gaming headset market, as well as directly enables us to address the roughly $1.3 billion 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.” As previously stated, the Turtle Beach Corporation recently revealed that, it had an interest in Roccat, GmbH. This interest stemmed from Roccat’s illustrious history, in the European marketplace. Incidentally, Roccat’s history does include award winning product innovation. Fascinatingly, this interest resulted in, an agreement to acquire. Post-acquisition, the Turtle Beach Corporation will receive the full portfolio of, Roccat PC gaming product lines. Additionally, a distribution pipeline will also be obtained, post-acquisition. The distribution pipeline is for both brands. This pipeline covers the world regions; North America, Europe and Asia. Lastly; the preliminary acquisition cost, was revealed to be a minimum of, $14.8 million USD.
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Written from Press Release
Registered Writer with
PR Newswire Association, LLC
R-Berumen28
03/16/2019
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