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Turtle Beach has agreed to acquire Roccat for $14.8 million in cash, $3.4 million in earn-out payments, and $1 million in cash or stock (Roccat's choice) for a total cost of $19.2 million.
The deal was announced on March 14. Turtle Beach said in a press release that its Roccat acquisition "further strengthens its market position in key PC-centric European territories" and gives it "distribution into new Asian markets" where Roccat operates.
Turtle Beach said that it also plans to expand Roccat's market share in North America using its existing sales and distribution platforms. The acquisition, at least in theory, is supposed to allow both brands to grow around the world.
This arrangement would also help Turtle Beach's efforts to branch out from consoles, where it said it'd held more than 40 percent of the gaming headset market for nine consecutive years, to PC. Roccat specializes in gaming mice, keyboards, and PC accessories.
Turtle Beach CEO Juergen Stark said in the press release:
"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."
The company said it expects the deal to close by the second quarter. If it does, Roccat's contribution to Turtle Beach's net revenues for the rest of 2019 could be $20-24 million, with Turtle Beach expecting that number to rise to $30 million in 2020.