Headphone maker Turtle Beach Corp nearly doubled sales last year by capitalising on the popularity of Fortnite. Now it’s picking up more of the accessories that have soared with the success of the hit videogame.
Turtle Beach completed its acquisition of German keyboard and mouse manufacturer Roccat on June 3, giving the company a larger presence in the market for videogame peripherals. The San Diego-based company paid US$15.6mil (RM65.05mil), plus as much as US$3.3mil (RM13.76mil) more based on future earnings.
The 45-year-old company has gone “from being a primarily North America and Europe-focused console gaming headset leader to being a global PC-game accessories company”, chief executive officer Juergen Stark said in an interview.
The purchase will add more than US$30mil (RM125.10mil) to revenue in the next year and increase earnings, he said. Turtle Beach generated US$287.4mil (RM1.19bil) in sales last year and net income of US$39.2mil (RM163.46mil), or US$2.74 (RM11.43) a share.
The company has been riding a surge in demand for gaming headsets, due in part to the popularity of Fortnite, the free-to-play shooting game that has drawn more than 250 million users around the world.
The industry is growing as videogame play becomes a more mainstream entertainment option, Stark said. The games themselves are more interactive, and players want to be able to chat with their friends during matches.
Turtle Beach makes headsets specialised for gamers. They can amplify quieter sounds in a game, for example, so the wearer might hear the approaching footsteps of a foe or the loading of their gun.
“Gamers love that because you can often hear your enemies before they can hear you and that can give you a real competitive advantage,” Stark said.
While Turtle Beach’s traditional headsets are used most often by players of Microsoft Corp’s Xbox and Sony Corp’s PlayStation consoles, Roccat will give the company a bigger presence in the PC gaming market, according to Stark.
The company has been publicly traded since 2010 and soared as high as US$89 (RM371.14) when it was known as Parametric Sound Corp. It changed its named to Turtle Beach in 2014. The stock closed Friday at US$8.32 (RM34.70), down 42% this year. – Bloomberg