General Business: Turtle Beach is buying Roccat for $19.2 million

Marco Green
March 16, 2019

Today, Turtle Beach entered into an agreement to acquire Roccat, which will see the headset maker roll the German peripheral manufacturer's hardware line-up to its accessory portfolio. The deal, revealed alongside Turtle Beach's Q4 and FY2018 results, is worth $19.2 million in cash, stock, and earn-out payments to the current owners of Roccat.

"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", said Korte. The acquisition is expected to be completed by Q2 2019 and will add approximately $20-$24 million to Turtle Beach's 2019 revenue. By acquiring ROCCAT, Turtle Beach further strengthens its market position in key PC-centric European territories, including Germany where ROCCAT is already a well-respected leading brand. "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". Turtle Beach, generally known as a console-focused manufacturer, already noted its plans to expand toward PC gaming as it launched the Atlas headset line previous year, and according to a press release the Roccat acquisition "significantly accelerates" those plans. Over recent years and months Roccat has become an increasingly strong presence in the HEXUS news and reviews sections.

Stark went on explain that the Roccat deal is "dynamic and strategically important", for a number of reasons. To a large degree, Turtle Beach and ROCCAT have no obvious overlap in terms of product portfolio and in terms of distribution channels, allowing them to integrate better. By taking over ROCCAT, the company gets keyboards, mice, and a variety of accessories for gamers. I was particularly interested in its recent innovations in mechanical keyboards - past year it introduced its own mechanical "Titan" switches and launched a "membranical" keyboard too. The Vulcan's design was also recognized by winning the 2019 iF Design Award for its product category.

Turtle Beach is primarily focused on the console gaming headset market, where it has held at least 40% market share for nine straight years, according to a release. Sales came in at $111.3 million, beating estimates by $1.1 million.

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