Turtle Beach Acquires ROCCAT: a New Gaming Peripherals Giant Is Born
by Anton Shilov on March 15, 2019 2:00 PM EST- Posted in
- Peripherals
- Keyboard
- Headset
- ROCCAT
- Mice
- Turtle Beach
Turtle Beach, a leading supplier of headsets and a developer of various audio technologies, this week signed an agreement to acquire ROCCAT, a maker of gaming peripherals. The move creates a new combined supplier of gaming peripherals with presence all around the world.
At present Turtle Beach is primarily known in the US and some European countries for its gaming headsets for consoles and PCs. By taking over ROCCAT, the company gets keyboards, mice, and a variety of accessories for gamers. Turtle Beach estimates that the merged company will have a total of 48 core product models for various markets. Furthermore, Turtle Beach gains presence in Asia and additional European countries, where ROCCAT is known. 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. It's not clear if ROCCAT hardware will be rebranded Turtle Beach, or if the ROCCAT brand will remain.
René Korte, the head of ROCCAT, and other employees of the company, will join Turtle Beach and will continue to design peripherals.
Under the terms of the agreement, Turtle Beach will acquire ROCCAT for $14.8 million in cash (net of a working capital adjustment), $1 million in cash or stock (company option), and up to approximately $3.4 million in earnout payments. Turtle Beach expects ROCCAT to contribute about $20 - $24 million to its 2019 revenue as well as over $30 million to its 2020 revenue.
Sales of Turtle Beach totaled $287.4 million in 2018, whereas it net income was $39.2 million. The lion’s share of the company’s revenue was contributed by headsets for game consoles sold in North America, a market where Turtle Beach commanded a ~40% share for the past nine years. Meanwhile, Turtle Beach plans to increase sales of its PC gaming accessories to $100 million in the coming years, so the acquisition of ROCCAT is strategically important for the company.
Related Reading
- Turtle Beach Demos HyperSound Glass: Transparent Speakers Made of Glass
- ROCCAT Unveils Vulcan Mechanical Keyboard: Titan Switch, AIMO Lighting
- ROCCAT Integrates Keyboard and Smartphone: The Skeltr
- ROCCAT Announces the Nyth Semi-Modular Mouse
Source: Turtle Beach
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MarcusMo - Saturday, March 16, 2019 - link
They estimate that they have 48 core product models?I haven’t used either brand since a pair of turtle beach speakers in the nineties, but if you don’t know how many core products you have - or that there are close to 50 for a company their size, chances are that they are all going to suck. Apple has what, 10 core products?
How much love and attention does that statement really indicate?
Flunk - Saturday, March 16, 2019 - link
Great, too brands that make subpar crap. I'd rather buy Razer*.*and it's not like Razer products are any good.
LordSojar - Sunday, March 17, 2019 - link
Currently using a Roccat Vulcan 120 AIMO, and suffice to say... best keyboard I've ever owned.It shames every other keyboard in terms of design, the Titan switch technology is stunning and incredibly lovely to type and game on, and the keyboard is built extraordinarily well.
Roccat usually doesn't make anything that's less than great quality in their hardware. German companies aren't that flashy or out there, but they make some premium products. I can't speak to Roccat's earlier stuff, but once they got rolling, they've been putting out some serious hardware. I think Turtle Beach is (hopefully) going to seize on that; or, they're going to totally ruin any progress Roccat has made and eliminate those exacting German standards. That would be a pity..
Roccat does currently struggle in the software department though... which is unfortunate.
Beaver M. - Monday, March 18, 2019 - link
Lets hear from you again in 1 or 2 years.I thought that of my Razer Naga too. Was expensive enough after all.
But it broke very early.
FreckledTrout - Monday, March 18, 2019 - link
Turtle cat, turtle cat doing whatever a turtle cat does.Hxx - Monday, March 18, 2019 - link
Haha thats what i was wondering too if they will end up changing their name. "Turtlecat peripherals" sounds legit to me lmao.