Corsair Gaming, Inc. CRSR has entered into a definitive agreement with Endor AG to acquire the Fanatec Sim Racing brand and all associated personnel.

Situated in Landshut, Germany, Fanatec’s product portfolio includes force feedback steering wheels and wheelbases, pedals, shifters and other accessories for PlayStation, Xbox and PC-based racing simulators.

Following the announcement, CRSR stock gained 3.9% during the trading hours and 0.3% in the after-hours on Monday.

CRSR’s Prospects From the Buyout

Corsair recently announced its breakthrough product, Sim Racing chassis, showcasing its take on product innovation and customer experience leadership. The acquisition of the Fanatec brand will uniquely position it as a leading Sim Racing end-to-end product solution, given the product portfolio enhancement and market expansion.

By leveraging the significant popularity and growth of Fanatec over the past few years and its existing product lines, Corsair aims to enhance users’ customer service experience, increase sales opportunities and foster profitability. Per Endor, in 2023, Fanatec’s product sales were approximately $110 million.

CRSR plans to maintain the core business in Landshut while expanding the Fanatec brand’s position as a world-class product development center for Sim Racing products. Furthermore, the company plans to make significant investments in the brand and its products and increase global availability through its channels. Going forward, all present and future Fanatec customers will benefit from Corsair’s top-tier support, including warranty and software updates.

New Product Offerings Bode Well for CRSR

Corsair is sparking its growth momentum and expanding market share through new product launches. Its consistent strategic investments in product innovations and related launch requirements have resulted in impressive growth synergies.

In the trailing nine months, the company has increased its footprint and market reach through new product launches. One of its significant new launches is the K65 wireless keyboard, which immediately garnered a positive response from the United States market. CRSR also launched teleprompters, PC controllers and mobile controllers under its gamer and creator peripheral segment. The company aims to continue expanding its product range and market reach through organic and inorganic moves, thereby fostering growth and profitability. It also expects to maintain a healthy balance sheet with sufficient cash to fund these strategic developments.

Image Source: Zacks Investment Research