Mad Catz Acquires Fellow Peripheral Firm Saitek

Interactive entertainment peripheral maker Mad Catz Interactive has announced that it will effectively acquire PC game peripheral and accessory provider Saitek, through a $30 million agreement to purchase 100 percent of the shares of the private holding company that owns Saitek's worldwide operations. According to the announcement, in its latest fiscal year ended February 28, 2007, Saitek generated over $43 million of net sales. Mad Catz says the acquisition will boost its 2008 earnings, and that the move is consistent with its strategy to diversify its products and geographic distribution capabilities. Saitek's product lines include PC game accessories, PC input devices, peripherals such as keyboards and mice, and multimedia audio products. Mad Catz says that not only is this product line "strategically complementary," but that the Saitek product range will support Mad Catz's retail distribution particularly in Europe, where Saitek generates more than fifty percent of its revenues. Saitek's 120 employees in product development, sales and marketing, distribution, finance and administration are expected to join Mad Catz. Saitek has offices in the United Kingdom, Germany, France, United Sates, Hong Kong and the Peoples Republic of China. Mad Catz also revealed its results for the fiscal 2008 second quarter ended September 30, 2007 with revenues of $16.9 million, a 34.6% decrease from $25.8 million in the previous year, and profits were $0.9 million, up slightly from $0.2 million in the previous year. The company mentioned that it continues its "strategic plan to diversify and expand product lines, acquire attractive brand licenses and complete accretive transactions". Some of the quarter's highlights included the release of Halo 3-branded faceplates, a multi-year extension to a license agreement with the NBA to produce branded controllers and accessories, and the launch of the AirDrives and AirDrives for Kids headphones line.