Corsair Gaming to Acquire Fanatec Sim Racing Brand, Stock Up

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

Shares of this computer peripherals and hardware company have lost 40.7% in the past three months against the Zacks Gaming industry’s 0.1% growth. Although CRSR’s shares have underperformed its industry, consistent product innovations and new launches are likely to aid it in gaining growth momentum in the upcoming period.

CRSR’s Zacks Rank & Key Picks

Corsair currently carries a Zacks Rank #5 (Strong Sell).

Here are some better-ranked stocks from the Zacks Consumer Discretionary sector.

Interface, Inc. TILE currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

TILE has a trailing four-quarter earnings surprise of 65%, on average. The stock has surged 95.1% in the past year. The Zacks Consensus Estimate for TILE’s 2024 sales and earnings per share (EPS) indicates growth of 3.9% and 28%, respectively, from the year-ago levels.

DoubleDown Interactive Co., Ltd. DDI currently sports a Zacks Rank of 1. DDI has a trailing four-quarter earnings surprise of 22.1%, on average. The stock has gained 43.5% in the past year.

The Zacks Consensus Estimate for DDI’s 2024 sales and EPS indicates an increase of 12.6% and 15.8%, respectively, from the year-ago levels.

Norwegian Cruise Line Holdings Ltd. NCLH presently sports a Zacks Rank of 1. NCLH has a trailing four-quarter earnings surprise of 5.7%, on average. The stock has gained 16% in the past year.

The Zacks Consensus Estimate for NCLH’s 2024 sales and EPS indicates an increase of 9.8% and 125.7%, respectively, from the year-ago levels.

Only $1 to See All Zacks' Buys and Sells

We're not kidding.

Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.

Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

Zacks Investment Research