Video game accessory company Mad Catz announced that it acquired 100 percent of the stock of California-based gaming audio headset firm Tritton Technologies with a potential $10 million deal.
Terms for the acquisition include $1 million in clash at closing, as well as a maximum of $9 million in cash over the next five years depending on whether Tritton's products will hit unspecified sales goals. Mad Catz will also enter into an employment agreement with Tritton founder and CEO Christopher Von Huben, as well as a limited number of "other key Tritton employees."
Tritton's core products are comprised of a range of audio headsets targeted at gamers priced from $69.99 to $169.99. The headsets are designed to work on all major gaming platforms and computes, and offer features like Dolby Digital surround sound. The company generated around $8 million in revenue from sales of those products and others, mostly in North America, during the 2009 calendar year.
"The gaming headset category is one of the fastest growing within the gaming sector, and the acquisition of Tritton significantly enhances Mad Catz’ opportunities in this very attractive market segment," says Mad Catz CEO and president Darren Richardson.
"He adds, Tritton has developed an attractive portfolio of premium products and a brand that resonates strongly with gaming enthusiasts. Additionally, this acquisition further diversifies Mad Catz’ revenue base and is consistent with our strategy to create shareholder value by leveraging our global capabilities with high-value products that enhance the gaming experience."