San Diego and Hamburg have become sister cities, at least as far as Turtle Beach is concerned. San Diego-based Turtle Beach has acquired German PC peripherals maker Roccat for $15.6 million.
Turtle Beach’s acquisition of Roccat marks the beginning of the next phase in the company’s expansion into the $2.9 billion market for PC gaming headsets, mice, and keyboards. Turtle Beach wants to build a $100 million PC gaming accessories business in the coming years.
“With the acquisition of Roccat complete, we have a bigger and more powerful Turtle Beach than ever before, and we believe our combined product portfolio will be one of the strongest in the industry,” said Juergen Stark, CEO of Turtle Beach, in a statement. “The ROCCAT team and their products already have a great reputation among PC gamers, and their expertise will help accelerate our expansion into the roughly $1.6 billion PC gaming headset market and the roughly $1.3 billion PC gaming keyboard and mice market. Our goal is to expand from being the leader in console gaming headsets into becoming a leading gaming accessory brand for all platforms.”
René Korte, the new co-managing director of Turtle Beach’s German subsidiary added, “It’s a very exciting time for Turtle Beach and Roccat, as our newly combined portfolio now features nearly 50 current core product models across PC gaming mice and keyboards, PC gaming headsets, and console gaming headsets. And through our newly combined distribution channels across North America, Europe, and Asia, we’ll be able to deliver our lineup of award-winning products to an even bigger audience of gamers around the world.”
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Turtle Beach acquired Roccat for $15.6 million in cash plus up to $3.3 million in earnout payments. The company expects revenues from Roccat products to be well over $30 million in 2020, and that the acquisition will be accretive to net income and earnings per share in 2020.
Headsets have become popular alongside battle royale, as most of the games like Fortnite or PlayerUnknown’s Battlegrounds are more fun in co-op mode where you can hear your friends and talk with them.
Thanks to the headset growth, Turtle Beach reported record results for 2018 on March 14, with net revenue rising 93% to $287.4 million from $149.1 million. Net income was $39.2 million, up from a net loss of $3.2 million the year before.
