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Turtle Beach (HEAR) Bolsters Gaming Arsenal With PDP Buyout
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Turtle Beach Corporation (HEAR - Free Report) has made significant waves in the gaming industry with the recent acquisition of PDP, a premier gaming accessories provider, for an enterprise value of $118 million. This strategic move underscores Turtle Beach's commitment to fortifying its position in the gaming peripherals market.
The acquisition brings together two powerhouse companies renowned for their innovative products and robust growth trajectories. PDP's expertise in designing and distributing aftermarket gaming accessories, such as controllers and headsets, perfectly complements Turtle Beach's existing portfolio. This amalgamation is poised to unlock synergies and create a formidable force in the gaming peripherals segment.
According to industry analysts, the combined entity anticipates generating total revenues ranging from $390 to $410 million in the first full 12 months post-acquisition. Furthermore, post-synergy Adjusted EBITDA for PDP is projected to reach $22 to $28 million during the same period, showcasing the financial prowess of the merged entity.
One of the key highlights of the deal is the substantial cost synergies expected to materialize, with anticipated annual run-rate savings of $10 to $12 million. This, coupled with potential revenue synergies and best practice sharing, is poised to enhance the financial performance of the company.
Diversis Capital, the majority owner of PDP, will emerge as the largest shareholder of Turtle Beach post-acquisition. This underscores the confidence of industry stakeholders in the growth prospects and strategic vision of the combined entity.
The transaction, comprising the issuance of 3.45 million shares of Turtle Beach's common stock and approximately $79.9 million in cash, is expected to be immediately accretive to Turtle Beach shareholders. Moreover, the board of directors of both companies has unanimously approved the deal, signaling a vote of confidence in its potential benefits.
From Turtle Beach's perspective, the acquisition of PDP represents a significant milestone in its journey toward becoming a dominant player in the gaming peripherals market. With an expanded product portfolio, enhanced scale and strengthened market positioning, the combined entity is well-positioned to capitalize on the burgeoning demand for gaming accessories.
Headquartered in White Plains, NY, Turtle Beach develops, commercializes and markets gaming headset solutions for various platforms, including video game and entertainment consoles, handheld consoles, personal computers, tablets and mobile devices under the Turtle Beach brand. The company is well-positioned to benefit from quality products and enjoys a solid foothold in its served markets. Its headsets are suited for learning and working remotely via video or audio conferencing.
Zacks Rank & Key Picks
Turtle Beach carries a Zacks Rank #3 (Hold) currently.
Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2 (Buy) at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 19.8% and delivered an earnings surprise of 12%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200 and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
Headquartered in Wilmington, DE, InterDigital, Inc. (IDCC - Free Report) is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.
This Zacks Rank #2 stock has a long-term earnings growth expectation of 17.4% and has surged 46.7% in the past year. A well-established global footprint, diversified product portfolio and ability to penetrate different markets are key growth drivers for InterDigital. The addition of technologies related to sensors, user interface and video to its already strong portfolio of wireless technology solutions is likely to drive considerable value, given the massive size of the market to which it offers licensing technologies.
AudioCodes Ltd. (AUDC - Free Report) currently carries a Zacks Rank #2. It has a long-term earnings growth expectation of 24.8% and delivered an earnings surprise of 20.1%, on average, in the trailing four quarters.
Headquartered in Lod, Israel, AudioCodes offers advanced communications software, products and productivity solutions for the digital workplace. It provides a broad range of innovative products, solutions and services that are used by large multi-national enterprises and leading tier-1 operators around the world.
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Turtle Beach (HEAR) Bolsters Gaming Arsenal With PDP Buyout
Turtle Beach Corporation (HEAR - Free Report) has made significant waves in the gaming industry with the recent acquisition of PDP, a premier gaming accessories provider, for an enterprise value of $118 million. This strategic move underscores Turtle Beach's commitment to fortifying its position in the gaming peripherals market.
The acquisition brings together two powerhouse companies renowned for their innovative products and robust growth trajectories. PDP's expertise in designing and distributing aftermarket gaming accessories, such as controllers and headsets, perfectly complements Turtle Beach's existing portfolio. This amalgamation is poised to unlock synergies and create a formidable force in the gaming peripherals segment.
According to industry analysts, the combined entity anticipates generating total revenues ranging from $390 to $410 million in the first full 12 months post-acquisition. Furthermore, post-synergy Adjusted EBITDA for PDP is projected to reach $22 to $28 million during the same period, showcasing the financial prowess of the merged entity.
One of the key highlights of the deal is the substantial cost synergies expected to materialize, with anticipated annual run-rate savings of $10 to $12 million. This, coupled with potential revenue synergies and best practice sharing, is poised to enhance the financial performance of the company.
Diversis Capital, the majority owner of PDP, will emerge as the largest shareholder of Turtle Beach post-acquisition. This underscores the confidence of industry stakeholders in the growth prospects and strategic vision of the combined entity.
The transaction, comprising the issuance of 3.45 million shares of Turtle Beach's common stock and approximately $79.9 million in cash, is expected to be immediately accretive to Turtle Beach shareholders. Moreover, the board of directors of both companies has unanimously approved the deal, signaling a vote of confidence in its potential benefits.
From Turtle Beach's perspective, the acquisition of PDP represents a significant milestone in its journey toward becoming a dominant player in the gaming peripherals market. With an expanded product portfolio, enhanced scale and strengthened market positioning, the combined entity is well-positioned to capitalize on the burgeoning demand for gaming accessories.
Headquartered in White Plains, NY, Turtle Beach develops, commercializes and markets gaming headset solutions for various platforms, including video game and entertainment consoles, handheld consoles, personal computers, tablets and mobile devices under the Turtle Beach brand. The company is well-positioned to benefit from quality products and enjoys a solid foothold in its served markets. Its headsets are suited for learning and working remotely via video or audio conferencing.
Zacks Rank & Key Picks
Turtle Beach carries a Zacks Rank #3 (Hold) currently.
Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2 (Buy) at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 19.8% and delivered an earnings surprise of 12%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200 and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
Headquartered in Wilmington, DE, InterDigital, Inc. (IDCC - Free Report) is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.
This Zacks Rank #2 stock has a long-term earnings growth expectation of 17.4% and has surged 46.7% in the past year. A well-established global footprint, diversified product portfolio and ability to penetrate different markets are key growth drivers for InterDigital. The addition of technologies related to sensors, user interface and video to its already strong portfolio of wireless technology solutions is likely to drive considerable value, given the massive size of the market to which it offers licensing technologies.
AudioCodes Ltd. (AUDC - Free Report) currently carries a Zacks Rank #2. It has a long-term earnings growth expectation of 24.8% and delivered an earnings surprise of 20.1%, on average, in the trailing four quarters.
Headquartered in Lod, Israel, AudioCodes offers advanced communications software, products and productivity solutions for the digital workplace. It provides a broad range of innovative products, solutions and services that are used by large multi-national enterprises and leading tier-1 operators around the world.