Overclock.net banner

[Various] Private equity firm EagleTree buys Majority Share in Corsair for $525 Million (Update 2)

4K views 57 replies 43 participants last post by  OC'ing Noob 
#1 ·
Quote:


Private equity firm EagleTree Capital is reportedly in advanced discussions to purchase PC component and gaming accessory maker Corsair Components for north of $500 million.

Reuters, citing two sources familiar with the matter, reported on the development late last week. Surprisingly enough, the news has seemingly flown under the radar as virtually nobody else is discussing it.

Both Corsair and EagleTree declined to comment, the publication said.
Source 1: https://www.techspot.com/news/70187-private-equity-firm-reportedly-advanced-discussions-purchase-corsair.html
Source 2: http://www.reuters.com/article/us-corsair-lbo-idUSKBN19Y1WE

Update to this thread:
Quote:
Another part of it, however, is currently owned by Francisco Partners, an American private equity firm focused exclusively on investments in technology and technology-enabled services. In 2013, Francisco Partners made a $75 million investment in the company, after Corsair scrapped its IPO plans.

However, an industry source has shed some more light on the matter. The source (singular, since we couldn't verify this through multiple channels) told TPU that it isn't the entirety of Corsair that's for sale; only the share previously acquired by Francisco Partners. It's this particular stake that's being eyed by EagleTree Capital - probably at a much higher valuation than the initial $75 million investment. As always, you should take this current information with a grain of salt.
Source 3: https://www.techpowerup.com/235336/corsair-share-to-be-sold-to-private-investor-again

Update 2:
Quote:
Corsair announced today that EagleTree Capital reached a definitive agreement in partnership with current management to acquire a majority stake in CORSAIR from Francisco Partners and several minority shareholders.

As part of the transaction, CORSAIR founder and Chief Executive Officer Andy Paul will maintain a sizable equity stake in the Company and continue in his role as CEO. IMCO (Investment Management Corporation of Ontario) and the Honeywell pension are also co-investing alongside EagleTree, which is acting on behalf of its private equity fund EagleTree Partners IV.

"We are excited about the opportunity to partner with EagleTree and leverage the team's consumer products expertise to further accelerate our progress," said Andy Paul, Founder and CEO of CORSAIR. "We are very fortunate to have attracted such experienced investment partners. EagleTree's backing will allow us to continue to focus first and foremost on our loyal and passionate customers, and accelerate our investment in innovation and new technology and products to enhance the quality experience that enthusiasts and gamers have come to expect from us."

"This is a transformative time in the PC gaming industry. A rapidly growing global gamer population, together with the rise of eSports and streaming, has made PC gaming one of the world's most dynamic industries," said George Majoros, Jr., Co-Managing Partner of EagleTree. "CORSAIR is the undisputed leader in PC gaming hardware and has built a strong brand on a foundation of quality, innovation and an unwavering commitment to its passionate fans. We look forward to working with Andy and CORSAIR's talented management team to maintain the company's focus on innovative products, to expand into new markets, and to pursue selective transactions."

"It has been our pleasure to partner with Andy and the team at CORSAIR. They have built an incredible company and are well positioned for continued success," said Andrew Kowal, Partner at Francisco Partners. "We wish the company and EagleTree all the best in their next chapter of growth."

"Francisco Partners was a great partner to CORSAIR over the last several years," added Andy Paul. "Their counsel helped us accelerate our strategic objectives to diversify and deepen our product portfolio, realize an expanded global footprint, reinforce and focus our brand, and strengthen our financial position."
Source 4: https://www.techpowerup.com/235518/eagletree-capital-buys-corsair-majority-share-in-usd-525-million-transaction
Source 5: http://www.guru3d.com/news-story/eagletree-buys-majority-share-in-corsair-for-525-million.html
Source 6: http://www.tweaktown.com/news/58574/corsair-majority-stake-bought-525-million/index.html
 
See less See more
#5 ·
Quote:
Originally Posted by Digitalwolf View Post

My normal experience with a Private Equity firm buying anything... to put it simply has always been negative.
Yep. Buy Corsair for $500 million, screw over consumers with sub-par products and non-existent support until you make $450 million in cash, sell the now ruined company for $75 million and congratulate yourself for making 25 million dollars.
 
#8 ·
Quote:
Originally Posted by naz2 View Post

if corsair falls off then somebody will just take their place. that's how the market works
that is if there is anyone competent left that hasnt been bought up.

it takes years to build that trust and customer relationship. random startups just dont have the market presence for retailers to bother picking their products up
 
#9 ·
Quote:
Originally Posted by akromatic View Post

that is if there is anyone competent left that hasnt been bought up.

it takes years to build that trust and customer relationship. random startups just dont have the market presence for retailers to bother picking their products up
Corsair came in to the game only a few years ago. Before that there were other good companies. Corsair themselves also dont even manufacture their best products, they are made by other companies to slightly different specs than the basic model is. Those other companies could easily step up their game and come out with models just as good.
 
#10 ·
Quote:
Originally Posted by Digitalwolf View Post

My knee jerk reaction is... If this actually happens I won't have to worry about buying Corsair products anymore.

My normal experience with a Private Equity firm buying anything... to put it simply has always been negative.
Huh. Interesting that PE would be eyeing Corsair. But as you pointed out, when they see an easy profit target, they don't really care what industry it is in. The end game is always to reduce operating expenses, produce a string of quarters with appreciating net income, then cash out.
 
#12 ·
they make some fairly decent cases and keyboards
haven't seen the need to buy their SSD/memory for years (Samsung and G.Skill does it better, respectively)
their coolers and PSU are just re-branded/contracted out

sucks that there will be less competition...but I wont miss them terribly
 
#21 ·
Quote:
Originally Posted by rudyae86 View Post

Aren't most companies that make gaming peripherals just re-brand some products? Like seasonic or superflower PSU? Answering for a comment above me but to lazy to quote it lol
typically they are small and have small teams, maybe 5-10 for anything related to product development(across all product lines). it's smart to source your PSU internals from a manufacturer that already makes good power supplies. otherwise you waste 10 months salary on a few dedicated EEs, with the added risk that the project might fall through.
 
#23 ·
Quote:
Originally Posted by twitchyzero View Post

they make some fairly decent cases and keyboards
haven't seen the need to buy their SSD/memory for years (Samsung and G.Skill does it better, respectively)
their coolers and PSU are just re-branded/contracted out

sucks that there will be less competition...but I wont miss them terribly
Pretty much this. I think the first Corsair product I purchased was a white 600T when I had a 3960x build. I had some of their power supplies and one set of ram. I never purchased more of their ram because it was expensive and I personally liked G.Skill better. At some point I bought a few EVGA power supplies and never looked back.

I finally had decided to try out a Corsair 570x and had ordered it the day before I saw this thread... their cases are pretty much the only thing I pay attention to these days.
 
#24 ·
This already happened once. I don't remember exactly when but Corsair sold a controlling interest in 2011 or 2012 with a stipulation that they would have a period of time where they would be free to act for a set period of time. After that time elapsed, the Corsair Crab became a thing and they started selling "gaming" crap. I don't remember all the details but there are posts on this forum where CorsairGeorge talked about it and what a great thing it was for the company. This is probably just the end game of that.
 
#25 ·
For one, I could care less. I'd rather see corsair burn and die. I've bought two of their H110i (or whatever) AIO coolers and the pump died on each of them after a year. Their mice are terrible, and I have no real say on their keyboards but I mean for me, a mechanical is a mechanical generally speaking... I don't get too crazy on keyboards. Their PSUs are sea sonic rebrands so now worries there... Plenty of other ram brands as well...

Meh, yeah I just really don't care and I'd be perfectly fine with not being able to buy another corsair product again because I wasn't going to anyways
thumb.gif
 
#26 ·
Quote:
Originally Posted by Nilareon View Post

For one, I could care less. I'd rather see corsair burn and die...
How nice. And if you get your wish, are you willing to take over the warranties of people who bought their products?

Btw, not all Corsair PSUs are rebranded Seasonics.
 
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top