Why Gaming Audio & Accessory Firm Turtle Beach Shares Are Rocketing Premarket Thursday
Portfolio Pulse from Lekha Gupta
Turtle Beach Corporation (NASDAQ:HEAR) shares surged premarket after announcing the acquisition of Performance Designed Products (PDP) for $118 million and plans for a reverse Dutch tender auction. The acquisition, involving 3.45 million shares and $79.9 million in cash, is expected to boost combined revenues to $390-$410 million in the first 12 months post-acquisition. Turtle Beach also reported Q4 FY23 results with net revenue of $99.5 million, a slight decline from the previous year, and an adjusted EBITDA of $14.0 million. The company anticipates net revenues of $370-$380 million for 2024, driven by the PDP acquisition. Additionally, Turtle Beach plans to launch a Dutch Auction to purchase up to $30 million of its common shares, with the offer price ranging between $13.75 and $15.00 per share.

March 14, 2024 | 12:43 pm
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Turtle Beach's acquisition of PDP and reverse Dutch auction announcement have positively impacted its premarket stock price, indicating strong future revenue and EBITDA growth.
The acquisition of PDP is expected to significantly boost Turtle Beach's revenues and adjusted EBITDA, indicating a positive outlook for the company. The reverse Dutch auction, set at a premium to the recent closing price, reflects management's confidence in the company's value, further supporting the stock's short-term positive momentum.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100