Turtle Beach Corporation and Donerail Join Forces for Buyback
Turtle Beach Corporation's Strategic Share Repurchase
Turtle Beach Corporation (NASDAQ: TBCH), a well-known name in the gaming accessories industry, has announced an exciting financial move. The company has secured a definitive agreement to repurchase 694,926 shares of its common stock from Diversis Capital, a private equity firm. This repurchase will take place at a price of $14.41 per share, based on the 30-day volume weighted average price, totaling approximately $10 million.
A Partnership with Donerail Group
In tandem with Turtle Beach's announcement, The Donerail Group, noted for its investment management practices, will acquire 693,962 shares of Turtle Beach common stock from Diversis at the same per-share price. This strategic alliance underscores a deepening relationship between the companies as they both position themselves to enhance shareholder value.
Share Ownership Dynamics
With the completion of this transaction, Diversis will hold approximately 10% of Turtle Beach's outstanding common stock. Subsequently, the remaining shares owned by Diversis will be subject to a new 90-day lock-up agreement. This move is seen as a measure to stabilize ownership while fostering confidence in the company's value proposition.
CEO's Perspective on the Buyback
Cris Keirn, the CEO of Turtle Beach Corporation, expressed optimism regarding this transaction, stating, "This reflects our continued confidence in Turtle Beach's strategy and long-term value creation. This repurchase aligns with our capital allocation priorities and demonstrates our belief in the robustness of our business model."
The Impact of the Share Repurchase
This repurchase initiative is part of Turtle Beach's existing $75 million share buyback authorization and adheres to its credit agreement and capital return framework. The recent refinancing of its debt allows Turtle Beach to effectively execute this strategy, evidencing the company’s commitment to enhance shareholder alignment and boost ownership stability.
Commentary from Donerail's Managing Partner
Will Wyatt, Managing Partner at The Donerail Group, highlighted the substantial transformation of Turtle Beach during his tenure on its Board of Directors. "It has been a privilege to serve on Turtle Beach's Board and work closely with management. We are enthusiastic about increasing our investment in the Company as the Board focuses on delivering value for all shareholders," he remarked, indicating confidence in the future trajectory of the corporation.
About Turtle Beach
Turtle Beach Corporation is recognized as a leader among gaming accessory providers globally. Its brand is synonymous with stellar gaming headsets, highly-rated game controllers, and innovative gaming peripherals tailored for various gamers. Turtle Beach has earned accolades in the industry, frequently recognized for its customer support and innovative product offerings like the well-respected Victrix brand, which finds favor among professional gamers in esports and fighting game communities.
Conclusion
The recent agreement between Turtle Beach and The Donerail Group not only indicates a robust corporate strategy but also signifies the potential for future growth. As the gaming industry continues to expand, Turtle Beach remains committed to evolving and enhancing the gaming experience for its users while maximizing shareholder value.
Frequently Asked Questions
What is Turtle Beach Corporation's recent financial move?
Turtle Beach Corporation has announced a $20 million share repurchase from Diversis Capital, acquiring 694,926 shares.
Who is the Donerail Group?
The Donerail Group is an investment management firm that will acquire shares from Diversis, highlighting a strategic partnership with Turtle Beach.
What percentage of ownership will Diversis hold after the transaction?
After the transaction, Diversis will own approximately 10% of Turtle Beach's common stock.
How does this repurchase align with Turtle Beach's strategy?
This repurchase aligns with Turtle Beach's capital allocation priorities and strengthens its commitment to shareholder value.
What products does Turtle Beach offer?
Turtle Beach is known for its gaming headsets, game controllers, and various gaming peripherals aimed at enhancing the gaming experience.
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