Turtle Beach Announces Strategic Acquisition and Leadership Overhaul to Boost Market Position; Shares Surge 26%
Turtle Beach Corporation (Nasdaq: HEAR) has unveiled a set of strategic moves designed to enhance its stance in the gaming accessories market. These decisions include a significant acquisition and pivotal changes in leadership.
HEAR leads the PRISM Consumer Products index, with shares seeing a substantial increase of 26% intraday on Thursday.
Overview:
- Turtle Beach has entered into agreements to acquire Performance Designed Products (PDP) for $118 million, aiming to bolster its product lineup with PDP’s range of gaming accessories.
- This acquisition is expected to boost Turtle Beach’s annual revenues to $390-$410 million in the first full year after the transaction, with an anticipated Adjusted EBITDA of $22-$28 million.
- Turtle Beach anticipates achieving cost synergies estimated between $10-$12 million annually as a result of the acquisition.
- In addition to the acquisition, Turtle Beach has made significant leadership changes, including the appointment of Cris Keirn as CEO and the expansion of its Board to nine members, introducing Cris Keirn and David Muscatel from Diversis Capital.
- The company is set to launch a modified Dutch Auction to repurchase up to $30 million of its common stock, with a price range of $13.75 to $15.00 per share, funding this through available cash and borrowing capacity.
About Turtle Beach Corporation
Turtle Beach Corporation (the “Company”) (www.turtlebeachcorp.com) is one of the world’s leading gaming accessory providers. The Company’s namesake Turtle Beach brand (www.turtlebeach.com) is known for designing best-selling gaming headsets, PC gaming products, top-rated game controllers, and groundbreaking gaming simulation accessories. Innovation, first-to-market features, a broad range of products for all types of gamers, and top-rated customer support have made Turtle Beach a fan-favorite brand and the market leader in console gaming audio for over a decade.
