Previously it was reported that Francisco Partners is meeting Corsair most likely (at the time) to buy the company, however during a recent QnA session it is told by Corsair that Francisco Partners is not going to buy Corsair, rather it’s going to get funds of $75M from the firm and in exchange they will be a shareholder. However, it should be noted that its not clear how part of a shareholder Fransisco Partner is. If it is a signficant portion of the company, then its somewhat an equivalent of a buyout or owning the majority stake.
The company said:
Recently, we have started to make acquisitions, since we find that small companies making just one type of component cannot be efficient in the market the way we can be. In the last year we have bought two companies, one German company specializing in gaming peripherals, called Raptor Gaming, and a Scottish company making multi-room streaming music systems, called Simple Audio.
We would like to make more acquisitions, and this requires outside investment. That’s why we targeted the IPO market last year, but ultimately chose private investment from Francisco Partners instead because we believed the public markets did not properly understand or value our market niche.
The transaction of $75Million is expected to close within a few weeks. The company even added that they may pursue more acquisitions, perhaps even larger than Raptor Gaming and Simple Audio. It was also added that for company like Corsair, the PC market is alive and well and that their primary focus is on gaming and on the enthusiasts market.
On a more personal note, let’s just hope Corsair doesn’t forget humble beginnings and takes feedbacks from end-users and others, rather than not talking to anyone who doesn’t take a personal request to put the pros before the cons or to suggest to do certain benchmarks that suit their ‘image’, eventually ending up in a situation where people would say ‘See, I told you so!’
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