Turtle Beach has acquired German gaming accessory business, Roccat.
The deal was secured for $14.8 million in cash (net of a working capital adjustment), $1 million in cash or stock, plus up to approximately $3.4 million in “earnout payments”. Anticipated to complete in the second quarter, the acquisition is expected to push Turtle Beach’s 2019 net revenue to approximately $20–$24 million, with $30 million expected from Roccat’s line alone in 2020.
With Roccat’s “powerful product lineup”, Turtle Beach believes the acquisition will “significantly accelerate” Turtle Beach’s planned expansion into the $2.9 billion market for PC gaming headsets, mice and keyboards, particularly in Europe, while adding “new distribution for both brands in North America, Europe and Asia”.
“This is a dynamic and strategically important deal for Turtle Beach,” said Juergen Stark, CEO of 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. […] We believe our combined product portfolio is one of the strongest in the industry, covering gaming headsets for consoles and PCs, 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.”
“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,” added Roccat CEO, René Korte. “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.”