Corsair Gaming, Inc. (NASDAQ:CRSR), a leading global developer and manufacturer of high-performance gear for gamers and content creators, has announced a definitive agreement to acquire the Fanatec Sim Racing product line from Endor AG. The acquisition, which includes the transfer of employees responsible for the Fanatec brand, is expected to close promptly.
Fanatec is renowned for its advanced sim racing equipment, which includes force feedback steering wheels, wheelbases, pedals, shifters, and other accessories compatible with PlayStation, Xbox, and PC platforms. The product line is based in Landshut, Germany, and has established a strong reputation among the racing simulation community for its quality and performance.
The acquisition aligns with Corsair's strategy to expand its portfolio in the gaming peripherals market, providing an immediate foothold in the rapidly growing sim racing sector. The move is anticipated to complement Corsair's existing product offerings and enhance its position in the global gaming hardware market.
The announcement was made through a filing with the U.S. Securities and Exchange Commission on Tuesday, September 17, 2024. Details regarding the financial terms of the agreement have not been disclosed. This strategic acquisition marks a significant step for Corsair Gaming as it continues to diversify its product range and invest in high-growth areas of the gaming industry.
Corsair Gaming's Chief Financial Officer, Michael G. Potter, signed the SEC filing, affirming the company's commitment to the acquisition and its future contributions to Corsair's growth. The integration of Fanatec's employees and product line is expected to be seamless, promising a new chapter of innovation and excellence in the sim racing and broader gaming markets.
In other recent news, Corsair Gaming, Inc. has announced its definitive agreement to acquire the Fanatec Sim Racing brand from Endor AG. This acquisition is expected to be finalized soon, marking Corsair's strategic expansion into the Sim Racing market. Fanatec, based in Landshut, Germany, had sales of around $110 million in 2023, according to unaudited figures reported by Endor AG.
In other recent developments, Corsair reported a dip in net revenue for the second quarter of 2024, dropping to $261.3 million from $325.4 million in the same quarter last year. Despite this, the company's gamer and creator peripheral segment experienced a 20% year-over-year growth, attributed to successful product launches. In addition to this, Corsair announced cost-saving measures, including a reduction of approximately 100 employees and cuts in external expenses.
The company revised its full-year 2024 outlook, expecting revenue between $1.25 billion and $1.35 billion, and adjusted EBITDA between $60 million and $75 million. Despite facing a challenging market landscape, Corsair remains confident in its long-term prospects, anticipating growth in the gamer and creator peripheral segment, and planning to acquire smaller companies in the peripheral and enthusiast space.
InvestingPro Insights
In light of Corsair Gaming's recent acquisition of Fanatec Sim Racing, investors may find the latest data from InvestingPro particularly insightful. As of the last twelve months leading up to Q2 2024, Corsair's market capitalization stands at $682.16 million, reflecting the company's position in the market. Despite facing challenges with a negative revenue growth of -0.78% during the same period, the company has made a notable 14.19% return over the last week. This could signal investor optimism following the acquisition news. Additionally, with a Price to Book ratio of 1.07, the valuation appears reasonable when compared to industry standards.
InvestingPro Tips suggest that while analysts have revised their earnings downwards for the upcoming period, they also predict Corsair will be profitable this year. This mixed outlook is further complicated by the stock's volatility and significant price drops over the last year. Yet, it's encouraging to see that liquid assets exceed short-term obligations, providing some financial stability for Corsair. For investors seeking more detailed analysis, there are 12 additional InvestingPro Tips available, offering a deeper dive into Corsair's financial health and future prospects.
These insights and tips can help investors and stakeholders better understand the potential risks and rewards associated with Corsair Gaming's strategic move into the sim racing market. As the company integrates Fanatec's product line and expertise, the financial metrics and expert analysis from InvestingPro will be critical in monitoring Corsair's performance and market position.
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