Mad Catz® Announces Sale of Saitek® Simulation Product Line to Logitech
September 15 2016 - 5:30PM
Mad Catz Interactive, Inc. (“Mad Catz” or “the Company”) (NYSE
MKT:MCZ), a global provider of innovative entertainment products,
today announced that it has sold its Saitek brand and the Saitek
line of flight, space and farm simulation game controller assets to
Logitech International S.A. (“Logitech”) (Nasdaq:LOGI) for $13
million in cash.
On September 15, 2016, Mad Catz entered into an
Asset Purchase Agreement with Logitech pursuant to which Mad Catz
sold certain assets to Logitech for an aggregate cash purchase
price of $13 million. $11 million of the purchase price was
paid in cash at closing and $2 million was deposited in escrow to
fund any post-closing adjustments or claims. The assets sold by Mad
Catz include specified trademarks, equipment and tooling,
inventory, technical data and records, and other related documents
necessary for the design, manufacture, marketing and distribution
of interactive flight, space, and farm simulation controllers
presently marketed and sold under the Saitek brand.
Additionally, eight of the Company’s research and development
employees accepted employment offers with Logitech.
Karen McGinnis, President and Chief Executive
Officer of Mad Catz, stated, "After a thorough and deliberate
process, we believe this sale to Logitech brings Mad Catz
attractive and certain value for the flight, space and farm
simulation line of Saitek products. We are pleased to find a
company like Logitech that will lead Saitek into its next phase of
growth and best support its strong acceptance within the flight
simulation community while also allowing us to continue to leverage
the world-class mice, keyboards and other products that were
originally developed on the back of our acquisition of Saitek in
2007 and are now sold under the Mad Catz brand.”
“Our Board and management team are highly
focused on enhancing shareholder value and we believe this
transaction is consistent with our ongoing efforts, enabling us to
improve our financial position and working capital to better
support and grow our Mad Catz and Tritton video game accessories
and headset brands. As we continue to evolve our business
strategy to operate the Company more strategically while leveraging
resources more efficiently, we are confident that the sale of the
Saitek brand and product line, along with the other
previously-disclosed Company-wide initiatives, will result in
improved financial performance and shareholder value.”
The transaction was recommended by a special
committee of the Company’s Board of Directors consisting solely of
disinterested directors and approved by the full Board of
Directors. Wedbush Securities acted as financial advisor to Mad
Catz in connection with the transaction and Stout Risius Ross
Advisors rendered a fairness opinion.
About Mad CatzMad Catz
Interactive, Inc. (“Mad Catz”) (NYSE MKT:MCZ) is a global provider
of innovative interactive entertainment products marketed under its
Mad Catz® (gaming) and Tritton® (audio) brands. Mad Catz products
cater to gamers across multiple platforms including in-home gaming
consoles, handheld gaming consoles, Windows PC and Mac® computers,
smart phones, tablets and other smart devices. Mad Catz distributes
its products through many leading retailers around the globe.
Headquartered in San Diego, California, Mad Catz maintains offices
in Europe and Asia. For additional information about Mad Catz and
its products, please visit the Company’s website at
www.madcatz.com.
Social
Mediahttps://www.facebook.com/MadCatz.Global http://twitter.com/MadCatz http://www.youtube.com/MadCatzCompany
Cautionary Note Regarding
Forward-Looking StatementsInformation in this press
release that involves the Company's expectations business
prospects, plans, intentions or strategies regarding its future are
forward-looking statements that are not facts and that involve
substantial risks and uncertainties. You can identify these
statements by the use of words such as “seek”, “anticipate,”
“plan,” “estimate,” “expect” “believe” and “intend” and statements
that an event or result “may,” “will,” “should,” “could” or “might”
occur or be achieved and other similar expressions together with
the negative of such expressions. These forward-looking
statements reflect management’s current beliefs and expectations
and are based on information currently available to management, as
well as its analysis made in light of its experience, perception of
trends, current conditions, expected developments and other factors
and assumptions believed to be reasonable and relevant in the
circumstances. These assumptions include, but are not limited to,
continuing demand by consumers for video game systems and
accessories, the ability to maintain or extend our existing
licenses, the ability to continue producing and selling our
products in accordance with various intellectual property that
might apply to said products, the continuance of timely and
adequate supply from third party manufacturers and suppliers, the
continued satisfaction of our obligations under our existing loan
agreements and any future loan agreements we may obtain, the
reaction of stockholders, customers, employees and counterparties
to the proposed transaction, and diversion of management time and
attention on transaction-related issues,. A further list and
description of these and other factors, risks, uncertainties and
other matters can be found in the Company's most recent annual
report, and any subsequent quarterly reports, filed with the U.S.
Securities and Exchange Commission and the Canadian Securities
Administrators. Forward-looking statements are not guarantees of
future performance or outcomes and actual results could differ
materially from those expressed or implied by the forward-looking
statements. We assume no obligation to update or alter such
forward-looking statements whether as a result of new information,
future events or otherwise except as required by law.Mad Catz, the
Mad Catz logo, and RAT are trademarks or registered trademarks of
Mad Catz Interactive, Inc., its affiliates and/or subsidiary
companies. All other marks are the property of their owners.
Mad Catz Communications:
Dave McKeon
Chief Financial Officer
dmckeon@madcatz.com or (858) 790-5045
Investor Relations:
Joseph Jaffoni, Norberto Aja, Jim Leahy
JCIR
mcz@jcir.com or (212) 835-8500
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