Will Maintain Focus on Driving Value for
Stockholders as a Standalone Business
Leading gaming accessory maker Turtle Beach Corporation (Nasdaq:
HEAR) (“Turtle Beach” or the “Company”) today provided an update
regarding its previously announced review of strategic
alternatives.
Over the course of the review, the Board’s Strategic Committee
(the “Strategic Committee”), in consultation with its financial and
legal advisors, engaged in a proactive process to evaluate
strategic opportunities, focused on a sale of the Company. As part
of the review, the Strategic Committee, through its financial
advisor, Bank of America, contacted and held discussions with 109
parties, which included strategic and financial parties. The
Strategic Committee received robust interest from multiple
strategic parties, however, due to a number of factors including
current market dynamics, the challenging financing environment,
inflation affecting consumer discretionary spending and ongoing
integrations of prior acquisitions, these parties were ultimately
not in a position to move forward with an acquisition at this time.
Furthermore, while several financial parties submitted preliminary
indications of interest to acquire the Company, in light of factors
including current market dynamics and the challenging financing
environment, those parties declined to move forward in the process.
Therefore, the Strategic Committee has determined to conclude the
proactive outreach to potential buyers. Nevertheless, the Strategic
Committee will continue to evaluate strategic opportunities
consistent with the Strategic Committee’s charter.
“Through the duration of our extensive process, the Board and
Strategic Committee were singularly focused on maximizing value for
Turtle Beach stockholders,” said Mr. William Keitel, Chair of the
Strategic Committee. “We have conducted a robust and exhaustive
review of strategic alternatives, focused on a potential sale of
the Company, contacting over 100 potential acquirors, but these
parties were not able to make a proposal that would deliver value
to our stockholders due to a convergence of external factors,
including macro-economic challenges related to supply chain
constraints, inflationary concerns and a challenging consumer
spending environment. As a result, we ultimately determined to stop
proactive outreach to potential buyers but will continue to
consider opportunities consistent with the Strategic Committee’s
charter. We continue to believe in the strong prospects for Turtle
Beach in the large gaming market in which we operate and we remain
focused on driving value for stockholders as a standalone
business.”
Brian Stech, a member of the Board’s Strategic Committee, added,
“Turtle Beach is an award-winning pioneer and industry leader with
strong market share and brand awareness. My time on the Board has
given me confidence that the Company remains well positioned for
success and value creation once market conditions improve. I look
forward to continuing to work with management and the rest of the
Board to oversee the continued execution of the Company’s strategic
plan.”
Second Quarter 2022 Financial Results
In a separate press release, Turtle Beach today announced its
second quarter 2022 financial results, which are available on the
“Investor Relations” section of the Turtle Beach website. The
Company will hold a conference call today, August 8, 2022, at 2:00
p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss its second
quarter 2022 results.
Advisors
BofA Securities, Inc. is serving as financial advisor to Turtle
Beach and Orrick, Herrington & Sutcliffe LLP are serving as
legal counsel to Turtle Beach.
Forward-Looking Statements
This press release includes forward-looking information and
statements within the meaning of the federal securities laws.
Except for historical information contained in this release,
statements in this release may constitute forward-looking
statements regarding assumptions, projections, expectations,
targets, intentions or beliefs about future events. Statements
containing the words “may”, “could”, “would”, “should”, “believe”,
“expect”, “anticipate”, “plan”, “estimate”, “target”, “goal”,
“project”, “intend” and similar expressions, or the negatives
thereof, constitute forward-looking statements. Forward-looking
statements involve known and unknown risks and uncertainties, which
could cause actual results to differ materially from those
contained in any forward-looking statement. Forward-looking
statements are based on management’s current beliefs and
expectations, as well as assumptions made by, and information
currently available to, management.
While the Company believes that its expectations are based upon
reasonable assumptions, there can be no assurances that its goals
and strategy will be realized. Numerous factors, including risks
and uncertainties, may affect actual results and may cause results
to differ materially from those expressed in forward-looking
statements made by the Company or on its behalf. Some of these
factors include, but are not limited to, risks related to logistic
and supply chain challenges, the substantial uncertainties inherent
in the acceptance of existing and future products, the difficulty
of commercializing and protecting new technology, the impact of
competitive products and pricing, general business and economic
conditions, risks associated with the expansion of our business,
including the integration of any businesses we acquire and the
integration of such businesses within our internal control over
financial reporting and operations, our indebtedness, the Company’s
liquidity, and other factors discussed in our public filings,
including the risk factors included in the Company’s most recent
Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and the
Company’s other periodic reports filed with the Securities and
Exchange Commission. Except as required by applicable law,
including the securities laws of the United States and the rules
and regulations of the Securities and Exchange Commission, the
Company is under no obligation to publicly update or revise any
forward-looking statement after the date of this release whether as
a result of new information, future developments or otherwise.
All trademarks are the property of their respective owners.
About Turtle Beach Corporation
Turtle Beach Corporation (corp.turtlebeach.com) is one of the
world’s leading gaming accessory providers. The Company’s namesake
Turtle Beach brand (www.turtlebeach.com) is known for designing
high-quality, comfort-driven headsets for all gamers. Innovation,
first-to-market features, a broad range of products, and top-rated
customer support have made Turtle Beach a fan-favorite brand and
the market leader in console gaming audio for over a decade. In
2021, Turtle Beach expanded the best-selling brand beyond headsets
and successfully launched the first of its groundbreaking game
controllers and gaming simulation accessories. Turtle Beach’s
ROCCAT brand (www.roccat.com) combines detail-loving German
innovation with a genuine passion for designing the best PC gaming
products, including award-winning keyboards, mice, headsets,
mousepads, and other PC accessories. Turtle Beach’s Neat
Microphones brand (www.neatmic.com) creates high-quality USB and
analog microphones for gamers, streamers, professionals and
students that embrace cutting-edge technology and design. Turtle
Beach’s shares are traded on the Nasdaq Exchange under the symbol:
HEAR.
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version on businesswire.com: https://www.businesswire.com/news/home/20220808005771/en/
For Investor Information, Contact: Cody Slach or Alex Thompson
Gateway Investor Relations On Behalf of Turtle Beach 949.574.3860
HEAR@gatewayir.com
For Media Information, Contact: MacLean Marshall Sr. Director –
PR/Communications Turtle Beach Corp. 858.914.5093
maclean.marshall@turtlebeach.com
Joele Frank, Wilkinson Brimmer Katcher Jed Repko / Nick
Lamplough 212.355.4449
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