On October 6, 2021, GN announced an agreement to acquire SteelSeries – described as “a global pioneer in premium software-enabled gaming gear.”
In an article published on the Hearing Review website announcing the acquisition, “SteelSeries reportedly makes premium gaming gear favored among the world’s e-sports gamers for its superior quality, inventive functionality and Scandinavian design heritage. SteelSeries is particularly known for its premium gaming headsets, keyboards, and mice that are software-enabled and system-integrated, which significantly enhance the user experience and reinforce customer loyalty.” The article states that, according to GN, SteelSeries has taken significant market share during the last few years after its acquisition of France-based A-Volute and US-based KontrolFreek.
All necessary conditions, including relevant regulatory approvals, have been met and GN has completed its acquisition of the SteelSeries group, according to its most recent announcement.
SteelSeries will be “a new growth engine to GN, operating with its own identity, brand and execution strength while benefitting from the industry leading capabilities and track record of GN Audio to drive continuous growth and value creation.” The core technology competencies of GN and SteelSeries complement and align very well, and it is anticipated that the combination will produce significant scaling opportunities and revenue synergies when combining SteelSeries with GN’s extensive global distribution footprint, GN said in its announcement. Consequently, annual run-rate operational synergies of around DKK 150 million (USD $23 million) by end of 2022 are expected.
The transaction represents an enterprise value on a cash and debt free basis of DKK 8.0 billion (USD $1.2 billion). The acquisition is funded as 100% cash payment financed through existing cash balance, the EUR 600 million (USD $686 million) 0.875% coupon Eurobond issuance announced on November 17, 2021, and a bridge loan, which GN expects to replace with other debt instruments.
The financial guidance for 2022, including SteelSeries, will be communicated in connection with the Annual Report 2021.