Over the last couple of weeks, the private equity firm EagleTree Capital has been reported to be in advanced discussions to acquire the video game gear maker Corsair for $500 million.
Early this morning, Corsair published a press release confirming that the EagleTree Capital has acquired a majority stake in the company. The total value of the deal is $525 million.
Although the EagleTree Capital now has a majority stake in Corsair, it is not the sole owner. The company still has minority shareholders. Andy Paul, Corsair’s founder and CEO, also retains a sizeable stake. He will also maintain his role at the company.
Corsair has been in the hardware business for more than two decades now. Over the years, it has greatly expanded its coverage and added new products to its portfolio. The company manufactures not only PC cases and liquid coolers but also high-end PC gaming accessories.
Andy Paul commented on the acquisition and said that working in collaboration with EagleTree would give the company a chance to accelerate its progress towards consolidating its positions on the market. He pointed that Corsair was fortunate to have attracted an experienced investment partner like EagleTree. He also added that EagleTree’s backing would enable Corsair to invest in new products and provide gamers with the quality they expect.
Although Corsair did not specify a date, the EagleTree transaction is expected to close in the next few months.
According to people with knowledge of the matter, this is a huge acquisition and it serves as an indication that the PC gaming sector is yet to be fully untapped. Market analysts firmly predict that this was the first of many major acquisitions. They believe that more and more prominent investors will discover the incredible potential of the industry and will be tempted to get a slice of the pie.