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Turtle Beach expands with PDP acquisition and CEO appointment

EditorNatashya Angelica
Published 13/03/2024, 21:26
© Reuters.
HEAR
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WHITE PLAINS, N.Y. - Turtle Beach (NASDAQ:HEAR) Corporation (NASDAQ:HEAR), a prominent gaming accessory brand, has completed the strategic acquisition of Performance Designed Products (PDP), a leader in gaming accessories, for $118 million.

The acquisition is set to enhance Turtle Beach's product range and financial performance. The deal, which closed immediately upon signing, was unanimously approved by the Boards of both companies.

The transaction involved issuing 3.45 million Turtle Beach common stock shares and roughly $79.9 million in cash, and is expected to be immediately accretive to Turtle Beach's shareholders. It is anticipated to contribute $390 to $410 million in total revenues and $22 to $28 million in adjusted EBITDA in the first full 12 months post-acquisition (Q2 2024 through Q1 2025).

Turtle Beach also unveiled plans to launch a modified Dutch Auction Tender Offer to repurchase up to $30 million of its common stock, priced between $13.75 and $15.00 per share. This offer is expected to commence around April 10, 2024, and aims to provide liquidity to shareholders at a premium to the recent closing price.

Alongside the acquisition, Turtle Beach announced the appointment of Cris Keirn as Chief Executive Officer, effective immediately. Keirn, a Turtle Beach veteran since 2013, brings extensive experience in product innovation and sales leadership.

The company's Board has expanded to include nine members, adding Keirn and David Muscatel from Diversis Capital, PDP's majority owner, which will become Turtle Beach's largest shareholder with a 16% stake.

Turtle Beach's 2024 financial outlook is optimistic, projecting net revenues of $370 to $380 million and pro forma combined adjusted EBITDA of $51 to $54 million, reflecting the PDP acquisition and ongoing efficiency improvements.

This news is based on a press release statement from Turtle Beach Corporation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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